Erroneous claims for vehicle tax credits cost U.S. taxpayers over $33 million

Article by Christian A., on February 8, 2011

After determining that 20% of the claims for federal tax credits for alternative and plug-in electric vehicles in the first seven months of 2010 were erroneous, the Treasury Department's inspector general for tax administration said that this cost U.S. taxpayers over $33 million.

These tax credits were put in place to urge consumers to buy energy-efficient vehicles, such as General Motors' Chevy Volt and the Nissan Leaf, which are priced higher than conventional gas-powered vehicles.

Recently, the Obama administration revealed plans to have 1 million advanced-technology vehicles on the road by 2015. Taxpayers who buy eligible vehicles can get a tax credit of up to $7,500.

The inspector general's report found that most of the erroneous credits were claimed for vehicles that weren't even eligible for the tax break.

The report said that among the vehicles claimed that were not eligible for the credit included the Hyundai Sonata, the Buick Enclave and a bicycle. In addition, the report discovered that 29 prisoners received a total of $49,926 in vehicle credits even when they were in prison at the time they claimed them.

The report said the IRS doesn’t have sufficient procedures to make sure that information given by individuals claiming the credits met qualifying requirements for vehicle year, placed-in-service date, and make and model.

In the inspector general's review of electronically filed tax returns, individuals who erroneously claimed the same vehicle for multiple plug-in electric and alternative motor vehicle credits or claimed an excessive number of vehicles for personal use credits were also named. [via USAToday]

Topics: united states

If you liked the article, share on:

Pin It

Comments

Recommended

Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries