First Time Homebuyers $8,000 Tax Credit – New Form and Some Delays

The First Time Homebuyers Tax Credit was extended and expanded on November 6, 2009 as it was set to expire on November 30, 2009. On November 24th I wrote a post about how to claim the credit stating when the IRS released the new form to file for homes purchased after November 6th, when the rules changed, I would link to the form.

Today, January 15, 2010, the IRS released the form.

What this means is there have been a whole lot of very frustrated people waiting for the tax credit. I don’t think most people in the field anticipated the IRS would wait a little over 2 months to get the new form out, leaving people who purchased homes between Nov 6th and today unable to file their returns for the credit.

Things got stickier today as well. No one claiming the first time homebuyers tax credit, or the step-up credit, will be able to E-File causing longer delays in seeing any money from the credit.

The problem is not necessarily the fault of the IRS but rather the sheer amount of scammers scamming the program. Because of the amount of false claims filed, claiming the credit now requires a few steps previously not in place

Print out form 5405
Provide proof of residency
Provide signed HUD settlement statement
Provided signed mortgage statement
Provide drivers license copy

The IRS has no way to process the extra documentation, except the old fashioned way – by hand. Therefore, no e-file, and expect at least a 3 month wait for your paperwork to make it through the process and receive the credit.

Even with the delay in receiving the credit, and the extra paperwork, the credit is still and excellent way to help homebuyers.

Feel free to contact me for more information on how the $8000 first time homebuyers take credit can help you purchase your Lake Powell home in Arizona or Utah.