Internal Revenue Service

IRS Opens Investigations on Homebuyer Tax Credit Abuse 

The Internal Revenue Service (IRS) is cracking down on fraudulent claims of the first-time homebuyer tax credit. The national tax service is trying to close loopholes in the system that it says allows unqualified borrowers access to taxpayer funds toward home purchases. The first-time homebuyer tax credit provides up to $8,000 to individuals or married couples who haven’t owned a home in three years and who close on a property by Dec. 1, 2009.