FRAUD threatening $8k 1st time homebuyer TAX CREDIT

Claims for the $8,000 First Time Homebuyer Tax Credit have resulted in approximately 15 billion dollars of funding by the Federal Government.  Threatening the existence of this very successful tax rebate, which is due to end on November 30, 2009, is the revelation from the Internal Revenue Service (IRS) that the program has been hit with over 100,000 fraudulent claims, totaling about 8 Billion dollars. While fraud is nothing new to the financial industry especially regarding real estate transactions, the scope and magnitude of the fraudulent claims is disturbing to those who would like to see Congress extend the deadline and continue the program which has resulted in many sales that would not have occurred otherwise. These include the National Association of Realtors, the National Association of Mortgage Brokers, the National Association of Home Builders and many other related lobby groups.  The FBI has been investigating “suspicious” write offs on tax returns that have been flagged by the IRS and 167 prosecutions have taken place so far.  After November 30, 2009 only veterans returning from active duty will be able to make a claim on their tax return for a first time home purchse unless Congress acts to continue the program which is as much a “victim of it’s own success” as was Cash for Clunkers.  The massive fraudulent activity now associated with the FTHBC will likely not endear Congressi0nal approval which needs to justify the expense to Government watchdogs already concerned about an already large deficit budget.