Homebuyer Tax Credit Wide Open To Fraud

Gee, that's a surprise. Another government program open to fraud?

Who would've thought it?

Many of the claimants for the tax credit are thought to be illegal aliens.

Many seeking the tax credit are under the age of 18.

Those applying for the tax credit do not have to produce documentation.

More government intervention usually means more forms, more bureaucracy and more fraud.

The Washington Post reports:

Linda Stiff, IRS' deputy commissioner for services and enforcement, agreed that "any time that there is an opportunity to receive cash back, it tends to attract people that might have an intent to defraud the government." She said the agency "will vigorously pursue those who filed fraudulent claims."

Rep. John Lewis, D-Ga., chairman of the oversight subcommittee, said he had introduced legislation to improve the IRS' administration of the program, including giving it the authority to look at prior returns to determine eligibility and requiring that taxpayers provide documented proof of a home purchase.

Currently, applicants must fill out a separate IRS form, but do not have to supply documentation.