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$33M Worth of Claims in 2010 were Erroneous!

February 4, 2011

We know that this nation is in debt. We hear about the deficit daily, as a matter of fact the number is so large that I don’t have enough characters in this blog to write it out. BUT when I read articles daily about how much money has been lost thru government means by stupid error, I feel that the deficit is hopeless. And it does anger me. How about you? In todays USA Today the articleIRS battles bungled vehicle tax credits” made me see red. 

About 20% of federal tax credits claimed for alternative and plug-in electric vehicles during the first seven months of 2010 were erroneous, costing US taxpayers more than $33 million, the Treasury Department’s inspector general for tax administration said Thursday. The tax credits are designed to encourage consumers to buy energy-efficient vehicles, such as General Motors’ Chevy Volt and the Nissan Leaf, which typically cost more than conventional gas-powered vehicles. The Obama administration recently announced plans to have 1 million advanced-technolgy vehicles on the road by 2015. Taxpayers who purchased eligible vehicles can receive a tax credit worth up to $7,500. The inspector general’s report found that most of the erroneous credits were claimed for vehicles that weren’t eligible for the tax break. Ineligible vehicles owned by taxpayers who claimed the credit included the Hyundai Sonata, the Buick Enclave and a bicycle, the report found.The report also found that 29 prisoners received a total $49,926 in vehicle credits even though they were in prison at the time they claimed them.

The article finished with the IRS saying they are taking aggressive steps to recapture the erroneously claimed credits. Well that’s good. I wonder how many man hours (and money lost) it will take to fix this problem. At GAI (www.gunwel.com) we know the difference between a Chevy Volt and a bicycle. We enjoy tax work and strive to give you professional and accurate service. You work hard for your money, let Gunwel work smart to help you keep it! Give us a call at 212-979-6830 or stop by for a visit. See you soon!

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