Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

Homebuyer credit: end it, don't mend it.

October 26, 2009

In the wake of rampant fraud in the first-time homebuyer credit -- including home "purchases" by four-year-olds -- a congresscritter proposes to "solve" the problem, reports Kay Bell:

Key provisions of H.R. 3901 would:

* Establish a minimum age of 18 to claim the credit. This was sparked by reports that individuals as young as 4 had filed for the credit.
* Require proof via a copy of documentation by the taxpayer when filing that an qualifying residence actually had been bought. In some cases, credit claims were made before the property purchase closed.

The bill also would give the IRS the authority to scan prior returns to determine eligibility.

In addition, H.R. 3901 would require more electronic returns to be filed by return preparers.

Only a congresscritter would look at an economically insane and fraud-ridden program and think "Let's fix this." Tax Vox has the right fix:

This program, as they used to say up in the North End of Boston, needs to take two in the hat.

But all the lobbyists feel otherwise.

Tags: Kay Bell.tax policy.TaxGrrrl.TaxVox.

      Bookmark: del.icio.us • Digg • reddit