Do you remember the credit that government gave out a couple of years ago if you purchased a new car? The tax incentive was designed to boost vehicle sales by allowing taxpayers up to a certain income level to deduct some state and local taxes from buying a car, light truck, motorcycle or motor home between February 2009 and January 2010. The deduction expired Dec. 31, 2009, and hasn’t been extended.
Now the IRS tells us that they stumbled in handling a tax incentive designed to promote automobile sales, handing a tax incentive designed to promote automobile sales, handing out more than $151 million in erroneous deductions, as well as 473 credits given to people who were imprisoned, dead or underage.
The IRS missed 4,257 individuals who claimed more than $151 million in underserved tax deductions as part of the 2009 stimulus package program designed to boost automobile sales.
In 473 cases, the tax agency erroneously allowed 439 prisoners who were in jail the entire year, 16 dead people and 18 children under the age of 15 to claim just over $1 million in deductions.
