2009 stimulus sent $1.44 billion to tax cheats ineligible for the money?

At least 6,200 people delinquent on their taxes received $1.44 billion of mortgage insurance from President Obama’s 2009 stimulus, the Government Accountability Office reports, despite their ineligibility for the money under federal rules.

According to the GAO, “many individuals with tax debt take advantage of government programs, such as federal loan insurance, thereby reaping benefits from these programs while failing to pay their own taxes.” The bipartisan group of senators — three Republicans, two Democrats — who asked the GAO to conduct its study of the mortgage insurance program noted that the $1.44 billion went to people who owed a combined $78 million in unpaid taxes.

“Our analysis likely understates the amount of unpaid federal taxes because IRS data do not cover individuals who fail to file tax returns or who understate their income,” the GAO added.