Report: IRS lax in checking auto buying deductions

WASHINGTON  — A watchdog report says the IRS did not require proof from people claiming deductions for new vehicle purchases allowed under the 2009 economic stimulus act. It says the IRS has been slow to investigate instances of claims for excessive deductions.

The Treasury Inspector General for Tax Administration says in the report that the IRS did not require third-party documentation of vehicle purchases or the amount of sales tax paid when taxpayers claimed deductions on their 2009 returns..

The report says the IRS also failed to identify and halt possibly erroneous refunds for 4,257 individuals who claimed $151.1 million in deductions in excess of what the IRS considered allowable.

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