IRS Looses Tax Payers

You may remember that in 2008 there was a $7,500 first time home buyer tax credit, but it was not really a tax credit as was given in 2009 and 2010. It was actually an interest free loan which was to be paid back at $500 additional taxes added on the tax payers bill each year over 15 years. This is much different then the 2009 and 2010 tax credits, which were real credits that reduced the home buyers taxes in the year of purchase and never had to be repayed. I thought this was a little unfair to the 2008 buyers making them pay back what was really a gift to other buyers in later years. Well worry not, I have just read that the Inspector General for the Tax Administration has announced that although 950,000 people owe the money the IRS has the incorrect purchase date in its database for some taxpayers who took the original credit. These people may never be identified as owing money, it admits. So there you have it