Fraud Plagues Homebuyer Tax Credit

According to a Treasury inspector general, rampant fraud has become a large problem for the Obama administration’s first-time homebuyer tax credit program, leading to losses of up to $504 million. In some cases, people were able to manipulate the program to such an extent that children as young as four years old were receiving federal tax credits.
The program offers a federal income tax credit of up to $8,000, which means that such a program could provide criminals with a tidy sum of money if there are not enough controls set in place to prevent it. So far, more than 1.2 …read more