Is an $8K credit worth $250K fine PLUS 3 years in jail?

Don't "accidentally" claim the first time buyers credit. The IRS doesn't take lightly to "accidents".

WASHINGTON — The Internal Revenue Service today announced its first successful prosecution related to fraud involving the first-time homebuyer credit and warned taxpayers to beware of this type of scheme.

On Thursday July 23, 2009, a Jacksonville, Fla.-tax preparer, James Otto Price III, pled guilty to falsely claiming the first-time homebuyer credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.

To date, the IRS has executed seven search warrants and currently has 24 open criminal investigations in pursuit of potential instances of fraud involving the credit. The agency has a number of sophisticated computer screening tools to quickly identify returns that may contain fraudulent claims for the first-time homebuyer credit.

“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”

Whether a taxpayer prepares his or her own return or uses the services of a paid preparer, it is the taxpayer who is ultimately responsible for the accuracy of the return. Fraudulent returns may result not only in the required payment of back taxes but also in penalties and interest.

First-Time Homebuyer Credit

Oakland, California, passes landmark marijuana tax - CNN.com

So California:

<cite>Oakland, California, passes landmark marijuana tax - CNN.com</cite>: "

Decrease font Decrease fontEnlarge font Enlarge fontOAKLAND, California (CNN) -- Oakland's bid to become the first U.S. city to tax proceeds on medical marijuana passed Tuesday by a landslide vote.About 80 percent of people voting in the Oakland election approved the new medical marijuana tax.About 80 percent of people voting in the Oakland election approved the new medical marijuana tax.About 80 percent of voters chose to impose the tax on Oakland's medical marijuana facilities, according to the Alameda County Registrar of Voters.Some celebrated the news at Oaksterdam University by hand-rolling large marijuana cigarettes or stuffing cannabis into pipes. The school trains students for work in the medical marijuana industry.'It is important because the city of Oakland is facing a massive deficit like many jurisdictions in California,' said Steve DeAngelo, a leader of one of the city's cannabis clubs. 'And we decided to step up to the plate and make a contribution to the city in a time of need.'DeAngelo, one of the people who led the effort to get the tax approved, said his business will now have to pay more than $350,000 from the new tax next year. Video Watch report from CNN's Dan Simon �

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Starbucks Returns to Store Expansion

Making plans as the market strengthens

<cite>Starbucks Returns to Store Expansion</cite>: "

SEATTLE-After closing hundreds of units in the last year, Starbucks Corp. is ready to expand again in 2010, executives said at the company's third-quarter conference call.The company now expects to open approximately 55 net new licensed stores in the United States and approximately 310 net new licensed stores internationally this year. Plans for 2010 are still being made, noted Troy Alstead, executive vice president and chief financial officer, and growth will largely be concentrated internationally. In addition, the company is testing a new store design in Seattle, Paris and Tokyo, and has opened a new concept, 15th Avenue Coffee and Tea, which removes the Starbucks logo and sells beer and wine as well, in Seattle.

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