New Home Buyers Tax Credit – Only Paper Filings Allowed
February 25, 2010 by Victoria Stankard · 1 Comment
According to a federal audit released last October by the Treasury Inspector General for Tax Administration (TIGTA), nearly 90,000 taxpayers claimed the New Home Buyers Tax Credit, for which they were not entitled to. More than 1.2 million tax returns had claimed approximately $8.5 billion in the refundable tax credit.
Although the rules of the tax credit define a “first time home buyer” as one who has not owned a home in three years, it is estimated that the IRS allowed approximately $480 million dollars in tax credits to taxpayers that were not first time home buyers.
First Time Homebuyer Tax Credit rules stipulate that a home buyer must actually close escrow and provide proof thereof to apply for the credit. However, more than 19,000 taxpayers claimed approximately $140 million dollars in credits for homes that had not been purchased yet.
View the full TIGTA federal audit report, including the response from the IRS response.
In response to the federal audit, the Internal Revenue Service (IRS) has implemented new filing requirements for the New Home Buyers Tax Credit and taxpayers are no longer allowed to claim the credit electronically. The IRS has released a new form, IRS Form 5405 “First-Time Homebuyer Credit and Repayment of the Credit,” Instructions can be found on IRS Form i5405.
As a result of increased compliance checks by the IRS, failure to submit required documentation will slow down the issuance of any applicable refund.
For more information about First-Time Homebuyer Credit filing requirements, visit IRS.gov .
Charlotte NC Real Estate Homes for Sale
If you’re looking to buy a home in the Charlotte metro area, you need Leigh Brown on your team. Leigh is the leading real estate broker, avoid foreclosure and short sale expert in Charlotte NC. Leigh has years of experience in the real estate industry and has walked many first-time home buyers through the buying process.
You can reach Leigh by filling out her online contact form or giver her a call at (704) 688-5005 or toll free at (866) 440-7136.
Source(s):
AOL News
CNN Money
Treasury Inspector General for Tax Administration
IRS.gov
Victoria Stankard is a freelance journalist, SEO copywriter and co-owner of Get Found Now, an online marketing and search engine optimization company. She and her husband, Michael Stankard, live in Tampa, Florida with their two children. Victoria writes for industry leaders who desire a strong Internet presence. If you would like Victoria to write for your current website/blog or create a dynamic, search engine friendly WordPress website/blog that will rank high in the search engines, email Victoria at: victoria (@) getfoundnow.com.
Leigh Brown, aka The Real Estate Diva, is a native of Concord NC in the Charlotte area. She grew up on a farm at the edge of Cabarrus County, still goes to the same church she grew up in (home of the world famous Mallard Creek Barbecue!), but has become a leader in area real estate through constant learning and continually upgrading technology to better serve buyer and seller clients. Leigh does indeed have a reputation as a barracuda-when it comes to protecting client interests. Her softer side is reserved for her husband and two kids who provide a constant source of joy-and entertainment
Comments
One Response to “New Home Buyers Tax Credit – Only Paper Filings Allowed”Trackbacks
Check out what others are saying about this post...[...] claim the tax credit, you will need send (via snail mail – no electronic fillings allowed) the IRS Form 5405 and a copy of the HUD-1 settlement statement. To find out more [...]