A report yesterday by the government’s “Treasury Inspector General for Tax Administration” shows that the IRS made a mistake in reporting purchase dates for 73,000 people who claimed the homebuyer tax credit.
According to a WSJ Blog post, that error would have triggered many being contacted by the IRS for repayment of the tax credit. But the mistake was caught – so phew …
The blog notes, too, that the IRS has created “new forms and instructions that will ask taxpayers to disclose a change in the home’s status that would trigger repayment.” Like selling the home within 36 months of the purchase date. The article also mentions that the IRS is looking into “third party” property records.
Amazingly, the report also noted that “currently, the IRS does not have the ability to identify individuals who received the Credit and their purchased homes cease to be their main residences.” (!!!)
File under: Bureaucratic efficiency