The DetNews points us to a Treasury Inspector General for Tax Administration report [full document in PDF format here] that reveals
Approximately $33 million in credits for plug-in electric and alternative-fueled vehicles credits were erroneously claimed by at least 12,920 taxpayers through July 24, 2010, according to a report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).
That means about 20 percent of the $163.9 million in credits claimed by taxpayers from January 1, 2010 to July 24, 2010 for plug-in electric and alternative motor vehicle credits were claimed in error.
The erroneous claims TIGTA identified resulted from inadequate IRS processes to ensure information reported by individuals claiming the credits met qualifying requirements for vehicle year, placed in-service date, and make and model. TIGTA’s review of electronically filed tax returns identified individuals who erroneously claimed the same vehicle for multiple plug-in electric and alternative motor vehicle credits or claimed an excessive number of vehicles for personal use credits.
More highlights: “at least” 88 prisoners filed for the credit, while other taxpayers sought the credit for vehicles like Buick Enclave, Chevrolet Camaro, Harley Classic, Hyundai Sonata, Cadillac Escalade, Dodge Durango and yes, HUMMER H3. Also,
TIGTA found that the IRS is unable to track and account for plug-in electric and alternative motor vehicle credits claimed by individuals on paper-filed tax returns. Processes were not established to capture this information from paper-filed tax returns.
we identified IRS employees who erroneously claimed plug-in electric and alternative motor vehicle credits
The good news: with $13m in fraudulent claims filed, we can take some solace in the fact that only $7m in funds have been lost…