A report published by the Treasury Department’s inspector general for tax administration yesterday concluded that over 15 million Americans may owe the IRS for the tax credit they received as part of the recovery (that wasn’t) plan. According to Yahoo News:
More than 15 million taxpayers may owe the government $250 or more because of how the IRS last spring set up President Barack Obama’s tax break that was designed to help consumers spend the U.S. economy out of recession. Individuals with more than one job and married couples in which both spouses work may have to repay the government $400, either through a smaller tax refund or a larger tax bill.
On top of that, roughly “65,000 taxpayers could technically face penalties for underpaying their taxes in 2009.”
I am sure that these taxpayers will be grateful to Mr. Obama for his super-sloppy implementation of his tax credit (which was a bad idea to begin with).