The U.S. Internal Revenue Service rejected $1.6 billion in erroneous claims for the first-time homebuyer tax credit, according to a report by the Treasury Inspector General for Tax Administration.
The refundable tax credit, worth as much as $8,000, was available to first-time homebuyers who made purchases in 2008, 2009 and 2010. As of July 30, 2011, the IRS processed 4.3 million claims for the credit totaling almost $30.4 billion, according to the inspector general’s report.
