A preliminary audit from the Treasury Inspector General for Tax Administration, TIGA, has uncovered as much as $500 million in fraud in the First Time Buyer Tax Credit. The audit has shown fraud to be both blatant and rampant, with thousands of aliens, hundreds of children, and as many as 53 IRS agents applying for the credit. There were also individuals who did not even own homes who received the credit.
What this demonstrates is the government’s inability to administer this program. Any time there are billions of taxpayer dollars involved and dishonest, incompetent, or indolent bureaucrats doling it out, there will be massive fraud and abuse. Although there ar other good reasons, for me this is sufficient justification for allowing the tax credit to expire without an extension.
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