Home Buyers Tax Credit: Fraud Prevention Measures Mean No Electronic Filing

by Alex Stenback on January 27, 2010

While we await the Fed announcement (2:15 PM ET, the policy statement will post here - link will be dead until 2:15ET)  amuse yourselves by reviewing the guidelines and IRS forms for the home buyers tax credit, which were released about ten days ago.

The form 5405 itself can be found here [PDF!] but do read the form 5405 release notes from the IRS, which give a number of helpful tips and information on filing for and when one can expect to recieve the credit. 

Some highlights:

  • All eligible homeowners must [with their form 5405] include a copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
  • taxpayers claiming the credit cannot file electronically and must file paper returns. Taxpayers can still use IRS Free File to prepare their returns, but the returns must be printed out and sent to the IRS, along with all required documentation.
  • The IRS expects to start processing 2009 tax returns claiming the homebuyer credit in mid-February.
  • Normally, it takes about four to eight weeks to get a refund claimed on a complete and accurate paper return where all required documents are attached.

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Source:
New Home Buyers Credit Form Released [IRS.gov]
January 15th 2010, Internal Revenue Service
· http://www.irs.gov/newsroom/article/0,,id=218336,00.html?portlet=7

{ 1 comment… read it below or add one }

SRSweeney April 5, 2010 at 9:54 pm

I filed my taxes using that form and I even sent in all the paperwork and wouldn’t you know it the IRS is now auditing me trying to clarify how I purchased my home. I have NEVER owned a home EVER and I did it with cash legally. I sent in all my forms and my HUD statement along with other documents only to have the IRS re-request the same information over and over again. I am beginning to wonder if the First Time Homeowner Credit is actually real or a hoax. I do not have a mortgage on my home and I guess that is bothering the IRS so much in fact they are looking at me like I stole my home. No matter what you do as a citizen you are always looked at more closely when you pay cash for anything in this country. I have college tuition debt, no credit cards and no outstanding bills I must be a liability to the Federal Government if they are now knit picking at my tax filings. I want my earned tax credit I have done nothing illegal or wrong and I feel the IRS is stalling when it comes to paying this tax credit I wonder why????

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