The IRS has instituted new documentation requirements to deter fraud in the reporting of the first time homebuyers credit. Taxpayers claiming the credit must now paper file their tax returns due to these new documentation requirements. They will not be able to e-file their tax returns. Additionally, the IRS has announced that those taxpayers who will be getting refunds will have to wait an extra 2 -3 weeks for processing of the refund. (Refunds normally take 4-8 weeks.)

All taxpayers must include one of the following documents with their 2009 tax return in order to claim the first time homebuyer credit:

1. A copy of their settlement statement or Hud-1. Both parties names and addresses must be completed as well as the sales price and the date of purchase.

2. A copy of the executed retail sales contract for mobile home purchases. The contract must show both parties names and addresses as well as the purchase price and the date of the contract.

3. A copy of the certificate of occupancy for newly built homes, when a settlement statement is not available.

The IRS encourages using direct deposit of your refund in order to speed up the process a bit.

Tax season is officially underway! The IRS will begin to accept e-filed tax returns on Friday, January 15th. Tax preparers across the county will begin electronically transmitting tax returns for individuals as well as businesses on this day.

If you are looking for a low cost way to e-file your 2009 tax returns, why not consider online tax preparation?

You will be able to prepare your tax returns and electronically file them online for a very nominal fee. Check out the “File Your Taxes Online” page.

If you have any questions about this service - contact us.