Possibility of Improper Geothermal Energy Tax Credit Claims

Gao ID: RCED-83-1 December 2, 1982

GAO evaluated the reasonableness of geothermal energy tax credit claims made by individual taxpayers. In performing this review, GAO did not examine any income tax returns.

The Internal Revenue Service (IRS) statistics indicate that taxpayers may be improperly claiming residential energy tax credits for geothermal energy expenditures. These tax credits have been claimed by taxpayers residing either in States without geothermal resources as defined by IRS, or in States with such resources but at depths too great to be economically useful. Without an examination of individual tax returns, it was not possible to prove that improper tax credit claims have been made. However, GAO believes the statistics provide sufficient indications of a potential problem to warrant IRS action.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: James Duffus Iii Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (202) 512-7756


The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.