Tax, Technology & Social Media Trends Blog
16 Jan
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.
2 Responses for "First Time Homebuyers Credit"
I built a home in a rural area with no building codes and no certificate of occupancy required to move in. What should I send the irs with my 5405.
John - if you have your Settlement Statement or Hud-1, the IRS should accept that. They only require one of the documents from the list. (Update 1-30-2010: Due to legislative changes late in 2009 as well as increased compliance checks - it is now highly recommended that a copy of the executed Settlement Statement be attached to all tax returns that are claiming this tax credit.)
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