When Congress enacted the first version of the homebuyer tax credit, first-time homebuyers were able to e-file their tax returns and even e-file amended returns in order to receive an almost instant refund check. Now that the homebuyer tax credit has been expanded and extended, buyers are finding that obtaining the refund check won't be quite so fast.
Last week, CNNMoney.com reported that the IRS finally posted FORM 5405 online, the new form required to request the homebuyer tax credit. The new form and instructions had delayed buyers who purchased a home after the tax credit rules changed on Nov. 6.
Under the new homebuyer tax credit, all contracts must be signed by April 30, 2010, with the closing to take place by June 30.
Instead of filing electronically, paper forms must be mailed to IRS for both amended 2008 tax forms and for those claiming the credit on their 2009.
Although the paperwork required is expected to slow down the refunds, it will also ensure that only taxpayers who truly qualify for the credit will get it. Last year there were reports of rampant fraud by people falsely claiming homebuyer tax refund checks.
Paperwork which is now required and should prevent this fraud includes proof of residency, a signed mortgage statement and a drivers license. Tax professionals expect the refunds to take a few months to get to the new homebuyers.
Many homebuyers opt to use the tax credit refunds to replenish their savings, repay money borrowed for a down payment or to make improvements or purchases for their new home. Now they need to be prepared to wait a little longer to make those financial moves.
Written by Michele Lerner
HULIQ.com
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Comments
#1 Tax Credit Refund
Still waiting also to do repairs and pay bills please hurry up the process thank you.