Frontline (the PBS program, not the flea and tick treatment) aired a program on affordable housing last night (May 9, 2017). They made some good points about the NIMBY reflex based on false stereotypes and prejudice, and potential for fraud in the LIHTC program in some states (not Maine!). For the most part, Frontline did a reasonably decent job.

There was, however, an element of the Frontline program that was particularly irksome. Senator Charles Grassley, current Chair of the Senate Finance Committee, complained about the low number of IRS audits in the LIHTC world. Listening to Senator Grassley talk, you’d think the IRS is neglecting its duty. However, that would be incorrect. IRS audits on LIHTC projects and generally are rare only because Congress keeps cutting IRS funding to the point that IRS lacks the funds to effectively enforce federal tax laws. Persuade your colleagues to fund IRS appropriately, Senator Grassley, and you’ll no doubt see increased audit activity, including increases in LIHTC audits.

Hopefully, Congress does not simply target the LIHTC program for scrutiny the way it targeted the earned income tax credit program. In other words, I hope Congress does not limit its focus on taxpayer abuse to programs that benefit people in poverty.

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