The IRS released the form Tax credit form 5405 “first time home buyers”
What this means is there have been a whole lot of very frustrated people waiting for the first time homebuyers $8,000 tax credit. I don’t think most people buying a home 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 ammend their 2008 tax returns for the credit or file early in 2010.
Things got a little sticker today as well. Now anyone claiming the first time homebuyers $8,000 tax credit, or the step-up credit of $6,500, will not 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 David Price with Coldwell Banker for more information on how the $8,000 first time homebuyers take credit can help you purchase your Tampa Bay FL property.