Tax Tip of the Week: IRS Paying out Tons of Bogus Refunds!

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IRS-refund-check The IRS announced that they paid out tons of bogus claims for homebuyer’s credits. This was based on an investigation by Treasury department inspectors. They uncovered claims that were paid out for homes that were purchased before the credit took effect, by taxpayers who listed PO boxes as the address of their new home purchase and those who purchased their home from a relative (which was not allowed). They even found some IRS employees who made phony claims.

This is just the tip of the iceberg of bad refunds issued by the IRS. The IRS estimates that they paid out almost $17 billion of earned income credits to taxpayers who did not qualify. This represents almost 25% of all earned income tax refund claims.

The IRS also states that improper claims for the electric car credit, the residential energy-credit and the adoption credit are slipping through their review procedures also.

Maybe the politicians and bureaucrats in Washington should consider getting their act together and stop the fraud, dishonesty and incompetence before they even consider raising taxes on the job creating small business owners again!

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