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Old October 20th, 2009, 10:14 AM
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Default Report: IRS eyes 100,000 for tax credit fraud

‘Criminal schemes’ probed over $8,000 allowance for first-time home buyers

The U.S. Internal Revenue Service is probing more than 100,000 doubtful claims of a tax credit meant for first-time home buyers, the Wall Street Journal reported on its Web site on Tuesday.

The $8,000 tax credit for first-time home buyers under the American Recovery and Reinvestment Act was passed in February to help prod the U.S. economy back to life.

Lawmakers have expressed concern that significant number of claims might turn out to be fraudulent, the paper said.

The IRS was investigating 167 "criminal schemes" involving the credit, according to the House Ways and Means oversight subcommittee, the paper said.

The IRS was not available to comment.


Reuters.


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