It's not an electric car just because it has a battery... Image: © GM Corp.
Imagine that: nearly 13,000 Americans tried to scam the government in the first half of 2010 by claiming they purchased an electric car. The false claims amounted to about 20% of credits granted, and totaled some $33 million. Twenty nine of the fake claims were filed by prisoners (why not roll the dice when you’ve got nothing to lose), while other fraudulent claims were actually filed by IRS employees. Currently unemployed IRS employees, I assume. Some taxpayers claimed the deduction for the purchase of a Hummer H3, a Dodge Durango or a Cadillac Escalade, and one form actually tried to claim the credit for purchasing a golf cart.
The $7,500 tax credit was intended to be used towards the purchase of a plug-in electric drive motor vehicle, so even conventional parallel hybrids didn’t qualify for the credit. The same amount was also given for converting a fuel-burning car to a plug-in, which seems to be a common conversion among Toyota Prius owners. The IRS is now working to recover the credits wrongly issued, and says that efforts to reduce incorrect claims helped them protect over $3 million in revenue so far. On the other hand, they could have simply hired a consultant who knows about cars to review manuals and software programs; I’d only charge $75 per hour, which would work out to be a whole lot less than the $33 million the agency paid by mistake.
Source: Inside Line
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
