Audit Reveals Plug-In Tax Credit Fraud

[Chris_]

IRS misfired on tax credit claims for plug-in cars, audit finds
^{David Shepardson / Detroit News Washington Bureau}

The Internal Revenue Service is tightening its rules to claim tax credits for plug-in electric and other alternative vehicles in the wake of an audit that says 14,000 taxpayers wrongly claimed $37 million in tax credits.  A 37-page report by the Treasury Inspector General for Tax Administration released today said the credits were being "abused."

It found that some IRS employees and jail prisoners had improperly sought the credit. At least 88 prisoners said they had purchased plug-in electric vehicles or alternative vehicles seeking $155,000 in credits, the audit said.

The vast majority of the wrongly sought credits were for vehicles that didn't qualify. Others claimed credits for vehicles that hadn't gone into production yet.

Some simply wrote bicycle, golf cart or taxi on the form.

Green Gold