Legislation makes critical improvements to eliminate fraud in the program
Washington D.C. – June 30, 2010 – (RealEstateRama) — The House of Representatives today voted to extend the closing deadline for taxpayers seeking the homebuyer’s tax credit. H.R. 5623, the Homebuyers Assistance and Improvement Act of 2010 would extend the current deadline from June 30 to September 30, 2010, enabling an estimated 180,000 additional homebuyers to utilize the credit. Taxpayers must have entered into a written, binding contract prior to May 1st to claim the credit. The legislation also includes an important provision to crack down on reported instances of fraud identified in a recent report by the U.S. Treasury Inspector General for Tax Administration.
“Millions of American families have taken advantage of the homebuyer tax credit, giving a boost to home sales at a time when our housing market needed it most,” said Ways and Means Committee Chairman Sander M. Levin (D-MI). “The credit helped spur our economic recovery and also helped first-time buyers achieve their dreams of owning a home. Today’s legislation helps ensure the credit works for people who followed the terms of the incentive and need a little more time to close on their pending contracts.”
“This legislation also takes important steps to eliminate limited instances of fraud that were recently discovered by the Treasury Inspector General for Tax Administration,” continued Chairman Levin. “Last year, the Ways and Means Committee, led by Oversight Subcommittee Chairman John Lewis, took the lead in examining the application of the credit, rooting out fraud and passing legislation to eliminate identified abuses. Current law only allows the IRS to exchange information with State prison officials. State prison authorities have stated that a cooperative effort is necessary to combat prisoner tax fraud. To permit effective tax administration, the bill would allow the IRS to disclose tax return information to officers and employees of State agencies charged with the administration of prisons.”
The cost of the legislation is fully offset. Please click here for a summary of provisions included in H.R. 5623.