As has been well advertised the $8,000 first time homebuyer tax credit was extended until April 30, 2010 and a new $6,500 repeat homebuyer tax credit was added.
Last year, homebuyers were allowed to e-file and would usually get the refund back within a few weeks.
Due to much fraud involved in claims for the tax credit such as IRS agents, more than 500 hundred people under 18, one of which was a child who was four years old, and repeat homebuyers claiming the credit illegally, buyers will now need to send in paperwork including form 5405, proof of residency, a drivers license and a signed mortgage statement.
The IRS took two months to create the form 5405 and now state that the refund will take approximately four months for the homebuyer to receive once all forms and documentation are received.
The IRS, the Obama Administration and Congress took a lot of heat about not having any checks and balances and allowing more than $500 million in fraud to take place, so it is understandable that they are playing it cautious now.
Hopefully, the government will go after the fraudsters especially the IRS agents who have absolutely no excuse for their actions.
The first time and repeat homebuyer tax credit expires on April 30, 2010 and the closing must occur on or before June 30, 2010 so if you are looking to buy a home, now is the time to do so. There is not much time left to purchase a short sale, though there is still plenty of time for bank owned foreclosures and normal sales.
Please contact me at 813-469-3163 or Jeff@MakeTampaYourHome.com with questions or for assistance.
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