Wednesday, October 12, 2011
The Treasury Inspector General for Tax Administration
yesterday released First-Time Homebuyer Credit Repayment Notices Were Incorrect, and the Method Used to Identify Dispositions Is Unreliable
Each of the laws which provide First-Time Homebuyer Credits (Homebuyer Credit) contains different Homebuyer Credit amounts, qualification requirements, and repayment requirements. Our review identified inaccuracies relating to the issuance of Homebuyer Credit repayment notices. ...
The IRS reported a total of $29.7 billion in Homebuyer Credit claims were made by more than 4 million individuals as of May 7, 2011. Our overall objective was to evaluate the effectiveness of IRS processes to ensure the accurate and timely repayment of the Homebuyer Credit. ...
The IRS issued incorrect notices or did not send notices to 61,427 households due to notice programming errors or incorrect information on tax account. ... [O]ur review of the third-party vendor’s research results for a statistically valid sample of 97 taxpayer accounts determined that for 40 (41%) of the taxpayer accounts, the information provided to the IRS had incomplete or inaccurate information.