The IRS has recently released a form, which eligible homebuyers have to claim in order to get the first-time credit of homebuyers this tax season. They have also announced tax returns processing and brand new requirements in documentation to deter any fraud that may be related to first-time credit of homebuyers.
This brand new form follows major changes that were made a few months back, which extended credit to a wider array of home purchasers while adding new requirements of documentation to avoid fraud and making sure that taxpayers properly get credit at the same time.
Now, eligible homebuyers can begin to file tax returns from 2009 while taxpayers who want to claim the credit of homebuyers need to file paper tax returns due to the extra requirements in documentation.
2009 tax return processing is expected to begin mid-February after completing the testing and updating of systems to meet brand new law requirements. These updates will let the IRS put important system checks into place in order to avoid any fraud related to credit from homebuyers. Several early taxpayers who want this credit might need to wait several more weeks before getting tax refunds, though.
Aside from filling out the required form, every eligible homebuyer needs to add one document from the following to get credit:
- A settlement statement copy that shows every party’s signature and name, sales price, purchase date, and property address.
- A copy of an executed contract of retail sales that shows every party’s signature and name, property address, purchase date and purchase price.
- An occupancy certificate copy that shows the owner’s property address, name and certificate date.
Plus, long-term residents of a home can claim this credit if they choose to buy a brand new main residence. In order to qualify, however, every eligible taxpayer needs proof of having lived within older homes for five consecutive years. Also take note that the IRS has become stricter with compliance checks now.