On Wednesday our friends at the IRS announced their first successful prosecution related to fraud involving the first-time homebuyer tax credit.
On Thursday July 23, 2009, a Jacksonville, Fla.-tax preparer, James Otto Price III, pled guilty to falsely claiming the first-time homebuyer credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.
Ouch.
There is more detail in an article posted at jacksonville.com. Things like Mr. Price was on probation for forgery, he was indicted on 35 tax-fraud counts (15 involved the first time home buyer tax credit) and my favorite part of the article:
Price, a married father of three, told U.S. Magistrate Howard Snyder he didn’t think he was in the wrong until he read the statute he was charged with.
Are you kidding me?
You make up addresses, you flat out lie and tell your clients you can qualify for the tax credit by working two jobs, and you skim a thousand bucks off your clients refund and you don’t think you are in the wrong?
Have fun in the pokey.
Folks, here’s the deal. Even if you have someone prepare your taxes, YOU are still responsible for the accuracy of the return. The tax code is ridiculously complex, but if you see things on your return like the address of some home you don’t know exists, if someone tells you that you get a homebuyers tax credit for working two jobs, then think about what you’re signing. If it doesn’t make sense, don’t sign the return.
Mr. James Otto Price may be the first person arrested for home buyer credit tax fraud, but I assure you he won’t be the last.
Yo! ”“> Need more info on the $8000 first time homebuyer tax credit?
Photo Credit: abardwell on Flickr. Creative Commons License.
The Phoenix Real Estate Guy was started by Jay Thompson, and I have a little blogging problem... he liked to say...
Jay, it is really sad.Your right when you point out that people don't use their head anymore.Common sense can be hard to find some times.
Jay, it is really sad.Your right when you point out that people don't use their head anymore.Common sense can be hard to find some times.
They should have special jails for the criminally stupid 😉
They should have special jails for the criminally stupid 😉
Thant is funny. Thanks I needed a laugh. Do you think he may want to really buy a home. Maybe writ a check for it. LOL salt lake homes for sale
Thant is funny. Thanks I needed a laugh. Do you think he may want to really buy a home. Maybe writ a check for it. LOL salt lake homes for sale
Yes, that's right you read first the contract so that will understand on what you are signing or on what you have involve to.
Tracy McGradyTracy McGrady8
Wow. Is prison fair? I think a heavy fine would be enough.
There is always someone trying to pull a fast one!
Wow. Is prison fair? I think a heavy fine would be enough.
There can be some truly awful outcomes.As someone's said, READ what you're getting into!
There can be some truly awful outcomes.As someone's said, READ what you're getting into!
There is always someone trying to pull a fast one!
We all have to be vigilant regarding these scams especially in these tough economic times.
We all have to be vigilant regarding these scams especially in these tough economic times.
This number is intended to help a lender ascertain the level of risk they may be taking in loaning you money. The system awards points based on information in your credit report. Lenders can predict how likely someone is to repay a loan and make payments on time.
good.
Wow, this is very interesting information. This is very important and your message that we all need to take responsibility for our own tax returns is right on point. Even though we look to professionals to help, we need to review their work for accuracy. Thank you for this post.
I love when people think that they didn't do anything wrong. Come on you claimed something that you shouldn't have, you have to know its wrong. Your asking for a credit that you don't deserve.
Hey Jay..long time since I've been here. One of my wife's buyers mention your blog…small world he sued to liv ein Phoenix. As for this post…it's probably just a matter of time before we see a lot of this stuff come to the surface.I see you're growing leaps and bounds…congratulations!
Hey Jay..long time since I've been here. One of my wife's buyers mention your blog…small world he sued to liv ein Phoenix. As for this post…it's probably just a matter of time before we see a lot of this stuff come to the surface.I see you're growing leaps and bounds…congratulations!