Prisoners Cash in on Home Buyer Tax Credit

Posted in Financial News , First Time Home Buyer , Mortgage Rates • June 25, 2010

The IRS has reported that prisoners are among the highest population of individuals who managed to defraud the system by getting their hands on the home buyer tax credit.

The agency reported on Wednesday that 1,295 prisoners, including 241 who were serving life sentences, were able to claim the $9.1 million in credits even though they were in prison at the time they claimed to have purchased their homes.

They weren’t the only ones scamming the system. Over 2,500 people claimed the tax though they’d purchased homes before the qualifying date. And another 10,282 claimed the tax when they’d already claimed other taxes for their homes. (USA Today)

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