Nearly 1 Million Home Buyers Must Repay Tax Credit

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Approximately 950,000 of the nearly 1.8 million Americans who claimed the federal first-time home buyer tax credit on their 2009 tax returns will have to repay the government, according to a report from the Treasury Inspector General for Tax Administration (TIGTA).

TIGTA’s study found that an estimated 4.1 percent of the approximately 1.77 million individuals receiving the tax credit had incorrect purchase dates recorded at the IRS.  The report also found that $10.1 million in home buyer credits were claimed by taxpayers who were identified as deceased by the Social Security Administration.

TIGTA recommended that the IRS take steps to correct the errors and IRS officials agreed with the recommendations and stated that they plan to take steps to improve controls.

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