Criminally Naive

I was raised to be a nice girl. You know the one that respected her elders, didn't talk back & all of that. Imagine the epiphany that I had at the young age of 23. I was diligently working two jobs for a year & a half to make ends meet when a business man actually lied to avoid paying my commission. It was beyond my comprehension that a man in the business community would actually lie to avoid paying my commission. As a distraught young professional, I called my father to ask why he hadn't prepared me for this life lesson. Life Lesson # 1. People, even professionals, have the capacity to lie, steal & cheat!

As I'm sure that most real estate agents will attest, the Obama First Time Home Buyer Tax Incentive has stimulated the real estate market, ggiving a much needed boost to the sluggish real estate marketplace. Inventory levels are dropping as a result of this and several other factors. Wouldn't you know that it's now coming to light that there's been an excess amount of fraud. Luke Mullins of U. S. News & World Report (10/22/09) reported the following, " Using computer programs & other means, a Treasury Department inspector general has identified more than 90,000 cases totaling more than $ 600 million in questionable first-time home buyer claims, while flagging shortcomings in the Internal Revenue Service controls." It appears that one of the more flagrant claims was made on behalf of a 4 year old. The article goes on to report that the inspector general has found at least 580 taxpayers under the age of 18 filing for the tax credit. One would have to then surmise that secondary home buyers are filing, along with others who have the capacity to dummy up documents or even be brazen enough to claim the credit without any documentation at all. Net/net, this once again catches me off guard. Who woulda thunk? Certainly, not the criminally naive!!!

As with all programs, there needs to be refinement, revision & reassessment. Does the IRS have enough manpower to monitor & review these claims? If not, why not? Let us all hope & pray that the political forces against the program will stop long enough to realize that this program has been effective, revisions are warranted & that more support is needed to monitor the claims. Let us all pray that those who practice fraud will get their just desserts, sooner vs. later. Let us stand strong as a real estate community and fight for the tools that we need to survive!