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Thursday, February 3, 2011

TIGTA: 20% Error Rate in Tax Credits Claimed for Electric and Hybrid Cars

TIGTA The Treasury Inspector General for Tax Administration today released Individuals Received Millions of Dollars in Erroneous Plug-in Electric and Alternative Motor Vehicle Credits (2011-41-011):

Approximately $33 million in credits for plug-in electric and alternative-fueled vehicles credits were erroneously claimed by at least 12,920 taxpayers through July 24, 2010. ... That means about 20% of the $163.9 million in credits claimed by taxpayers from January 1, 2010 to July 24, 2010 for plug-in electric and alternative motor vehicle credits were claimed in error. In the course of its review, TIGTA also found that 1,719 of the 12,920 individuals also erroneously reduced the amount of Alternative Minimum Tax they owed by almost $5.3 million.

According to TIGTA’s review, approximately 29 prisoners also received $49,926 in vehicle credits even though they were in prison all of Calendar Year 2009. The erroneous claims TIGTA identified resulted from inadequate IRS processes to ensure information reported by individuals claiming the credits met qualifying requirements for vehicle year, placed in-service date, and make and model. TIGTA’s review of electronically filed tax returns identified individuals who erroneously claimed the same vehicle for multiple plug-in electric and alternative motor vehicle credits or claimed an excessive number of vehicles for personal use credits. TIGTA also determined that the IRS cannot track and account for plug-in electric and alternative motor vehicle credits claimed by individuals on paper-filed tax returns because it has not established processes to capture this information from those returns.

http://taxprof.typepad.com/taxprof_blog/2011/02/tigta-tax-credit.html

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» Shocked. Shocked! from Roth & Company, P.C.
I'm shocked that non-compliance and fraud is going on here in the electric car tax credit casino! But the Treasury... [Read More]

Tracked on Feb 4, 2011 9:08:26 AM

Comments

it's come time for taxpayers to stop subsidizing the purchase of cars by pious douchebags.

Posted by: Real American | Feb 3, 2011 6:58:30 PM

I would bet the IRS is telling members of Congress, very discretely, that if the Obamacare 1099 provision is not eliminated the whole agency will grind to a halt in January of 2012.

Posted by: Joe Redfield | Feb 3, 2011 7:40:10 PM

I like the prisoner element. Reminds me of how IL prisoners received their ballots (in 2010 election), but their deployed soldiers didn't.

Hopeless, just hopeless.

Posted by: egoist | Feb 3, 2011 9:48:34 PM

I wonder if we can find out how many of these fraudulent tax credits went to the Obama sponsored GM Volt?

Posted by: Scotty Starnes | Feb 4, 2011 2:40:50 PM

Just curious as to how many of these tax credits went to sitting local, state or national "leaders?" And of these, how many were erroneously claimed?

Posted by: joecool | Feb 4, 2011 2:54:53 PM