Audit Finds IRS Lacks Adequate Control on Energy Tax Credits

The Internal Revenue Service hasn’t put in place effective procedures to prevent ineligible taxpayers from claiming tax credits for energy-efficient windows, doors and geothermal heat pumps, said a government audit released today.

Auditors sampled 150 tax returns and found no record of homeownership associated with 30 percent of that group. The auditors also found instances in which prisoners or people too young to purchase a house were claiming the credits.