David Kirkpatrick

September 1, 2009

IRS to use mortgage data to track down cheaters

The IRS has really been stepping up enforcement over the last couple of years. Sometimes (rarely really) you get the warm and fuzzy IRS, other times you get the buzzsaw.

I do agree with the point made below on the odd timing of this potential tax cheat catching tool.

From the link:

The Internal Revenue Service might scrutinize mortgage interest data more closely to help catch tax cheats, after prompting from an IRS auditor.

The tax collector said it will study whether it should make greater use of mortgage interest data provided to the IRS by banks, to target audits against individuals who do not file tax returns, according to a letter released Monday by the Treasury Inspector General for Tax Administration.

However, a stepped-up IRS focus on homeowners whose reported income falls below their mortgage interest obligations could attract criticism at a time when many have fallen behind on mortgage payments.

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