Audit Reveals Plug-In Tax Credit Fraud

by Edward Niedermeyer

Published: February 3rd, 2011

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.

Zoinks!

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.

Also:

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…

#EV #Government #Green

Edward Niedermeyer

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4 of 26 comments

FleetofWheel on Feb 03, 2011

All the bureaucracy lovers see nothing wrong with layers of tax incentives, hold backs and endless self-contradicting carrots/sticks. They actually think that without such govt enacted behavior engineering, no products would be made and no services delivered. In moment of clarity, they might realize that with a simpler tax code, taxes could be more swiftly and accurately taken from taxpayers and business but it's just too irresistible to not boss and goad people with their progressive urges, guilt and social experimentation.

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Shaker on Feb 04, 2011

The Republicans: Run up huge deficits by supporting the military industrial complex, fight illegal and unjust wars, allow deregulation so that "free market" proponents can avoid taxes, outsource jobs and destroy the middle class. The Democrats: Get labeled as "socialists" by trying to right all the wrongs of the previous Republican policy. Rinse and repeat. I'd rather see policies that try to move us forward as a country, into the future, than policies that support entrenched, money-centric dinosaurs that fear the future (there's more risk than profit in the short term) A benign government trying to mitigate some risk is somehow twisted into some sort of 'conspiracy' to alter people's behavior, while the previous administration merely had to wave the flag to spend billions on a war that no one truly wanted (except defense contractors and Halliburton). And that's why I like cars. (even though I'm starting to hate oil.)

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- Geeber on Feb 04, 2011
  shaker: Run up huge deficits by supporting the military industrial complex... Except, of course, it's fun to listen to Congressional Democrats - including the ones supposedly against excessive military spending - scream bloody murder when a proposed cut affects a military base or major defense contractor in their district. That is certainly entertaining. shaker: fight illegal and unjust wars... Yes, it was illegal and unjust to attack the country that sheltered the people who plotted the 9/11 attacks, and liberate said country from a backward, cruel regime. And I seem to recall lots of Democrats saying that a certain leader in Iraq had weapons of mass destruction and supporting the Iraq War (unless Bill Clinton and Hillary Clinton are now Republicans). For that matter, I recall our current vice president labeling Iraq a "success" on Larry King Live. Granted, he is known for his propensity to put his foot into his mouth, but I don't recall his boss (that would be the current president) contradicting him. shaker: ...allow deregulation so that “free market” proponents can avoid taxes, outsource jobs and destroy the middle class. You might want to review your history books. Deregulation of certain industries - airlines, trucking and telecommunications - started under President Jimmy Carter and was supported by then Senator Ted Kennedy. Are they now Republicans? And, last time I checked, deregulation had lowered prices and brought more choices to consumers in those sectors. We never "deregulated" the steel, auto, tire and heavy manufacturing industries, which are usually pointed to as proof that "deregulation" was a disaster for the country. Those industries went through a restructuring because they couldn't compete with the superior, more efficient foreign competition. But - surprise, surprise - the United States is still the number one manufacturing nation in the world, and manufacturing as a percentage of the gross domestic product has remained steady over the years. The difference is that we make MORE products with FEWER resources, which include employees. That is how productivity improvements work, and only the blessedly ignorant try to stop that process. Which, of course, includes the UAW and its attempt to prevent a reduction in the number of UAW members who work for the Big Three with the Jobs Bank. We see how well that one worked - it helped bring GM to bankruptcy and almost killed Ford, too.
  
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- CamaroKid on Feb 05, 2011
  
  Iraq sheltered the people who attacked us on 9/11 WOW... even dick cheney has dropped that BS.
  
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