Water Meter ‘Million Dollar Mistake’ Could Cost US Companies Millions In Taxpayers’ Money
A $1.4 billion water meter that could cost companies millions of dollars in tax money has been spotted by the Department of Justice, according to a report by Bloomberg.
The federal agency announced that the Department’s Taxpayer Advocate Service (TAS) had notified it of the violation on Thursday.
The TAS notified the Justice Department that a $1,939.96 water meter installed in July at a home in Piedmont, California, was “not properly configured,” according to the agency’s press release.
“As a result of the TAS’ investigation, the agency has determined that the meter did not meet the requirements for a tax-exempt tax credit,” according the press release from the DOJ.
“The agency will now proceed with its investigation to determine whether it was improperly used.”
The tax-free credit is granted to businesses and individuals who purchase water meters through a federal tax deduction.
The Taxpayer Advisory Service, an independent group that advises the government on how to handle tax-sheltered investment and tax issues, is responsible for issuing the tax credits, according the Tas press release, which does not specify how much money the meter cost the government.
The department’s TAS office, which is part of the DOJ, said in its notification that the $1 billion cost was due to the failure of the meter to correctly configure and that the “millions of dollars of lost tax revenue could have been recovered had the meter not been installed.”
The Justice Department did not respond to a request for comment on the matter.