The IRS has released IR-2009-69 noting that at least one tax return preparer has been convicted of fraud in falsely claiming the first-time homebuyer tax credit on behalf of the taxpayer. The release serves as a reminder of the consequences of any fraudulent claim.
The IRS has updated its computer screening capacity in order to identify fraudulent claims. To date, the IRS has 24 criminal fraud investigations pending related to the 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.
“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” Eileen Mayer, chief of the IRS’s Criminal Investigation unit, said in a statement. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”