WASHINGTON, D.C. - Ways and Means Oversight Subcommittee Chairman John Lewis (D-GA) today introduced the Homebuyer Tax Credit Improvement Act to improve the Internal Revenue Service’s (IRS) administration of the first-time homebuyer tax credit. The bipartisan bill is in direct response to testimony presented before the subcommittee today during a hearing to discuss administration of the credit and examine potential abuses uncovered by the IRS and Treasury Inspector General for Tax Administration. Cosponsors include Subcommittee Ranking Member Charles Boustany (R-LA), Ways and Means Committee Members Joe Crowley (D-NY) and Bill Pascrell (D-NJ), along with Rep. Dina Titus (D-NV).
“This legislation will help ensure that the IRS has the tools and authority it needs to prevent abuse of this credit," said Oversight Subcommittee Chairman John Lewis. “This tax credit is an important resource for families seeking to purchase a home and a vital part of our economic recovery efforts. We must ensure that we are administering the credit accurately and strike a balance between issuing timely refunds of the credit and protecting federal resources. I look forward to working with my colleagues to move this legislation forward."
The Homebuyer Tax Credit Improvement Act would improve administration of the credit and prevent abuse by:
* Requiring a minimum age of 18 to claim the credit
* Requiring that taxpayers attach a copy of documentation to prove that they purchased a home
* Providing IRS with authority to look at prior year returns and determine if a taxpayer is eligible for the credit
* Improving tax administration by increasing the number of electronic returns filed by return preparers
The Treasury Inspector General for Tax Administration, the U.S. General Accountability, and the IRS are in agreement that additional tools are needed to better administer this credit.
