For some folks who got through life without ever achieving the joys of home ownership, the first-time homebuyer credit gave them a shot at it in the afterlife. From a report of the Treasury Inspector General for Tax Administration:
TIGTA also identified 1,326 single taxpayers the Social Security Administration recorded as deceased who claimed $10.1 million in erroneous Credits. The IRS did not allow 528 of the 1,326 individuals to receive over $4 million they claimed for the Credit.
So what about the other 798? The report says the IRS should:
ensure the 798 individuals who TIGTA identified as being deceased prior to the purchase of the home are entitled to claim the Credit.
So the IRS has auditors beyond the veil? If you run into an IRS agent in the afterlife, you made a serious mistake somewhere along the line.
The TaxProf has more.
Listed below are links to weblogs that reference Dead people need a place to live too.:
» Homebuyer tax credit payback chaos? from Don't Mess With Taxes
This coming tax filing season, we're going to enter a new phase of the first-time homebuyer tax credit. Why should the next round of this tax boondoggle break be any different that from the confusing claim process? OK, maybe it won't be full-fledged ch... [Read More]
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