IRS Wrongly Awards Plug In Tax Credits To 14,000 Individuals Including 88 Convicts

The Internal Revenue Service is tightening its rules to claim tax credits for plug-in electric and other alternative vehicles in the wake of an audit that says 14,000 taxpayers wrongly claimed $37 million in tax creditsA 37-page report by the Treasury Inspector General for Tax Administration released today said the credits were being "abused."

It found that some IRS employees and jail prisoners had improperly sought the credit. At least 88 prisoners said they had purchased plug-in electric vehicles or alternative vehicles seeking $155,000 in credits, the audit said.