Tax Credit a Mismatch With Buyers’ Schedules
National Taxpayer Advocate Nina Olson testified before the Senate Finance Committee that assigning the IRS to run the home buyer tax credit program was a bad decision.
Tax filing and the rebate plan don’t mesh because most people need the money at the time they close or shortly thereafter. “Most people don’t close on their houses on April 15,” Olson told the committee.
Whether or not the program should be run by the IRS is immaterial, said Sen. Max Baucus, a Montana Democrat. The IRS should step up the get the job done, he said.
Meanwhile, claiming the home buyer credit appears to be a great way to trigger an audit. About 20 percent of all IRS examinations handled via the mail in the last six months were done on people who claimed the credit, Olson testified.
Source: Associated Press, Stephen Ohlemacher (04/15/2010)
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