The IRS has been dealing with bogus claims for the $8,000 first-time buyer's credit and the $6,500 credit for existing home buyer's credit.
So, to get the credit, now the IRS is requiring more documentation. A signed copy of the settlement statement must be attached to the tax return. Also, for buyer's claiming the $6,500 credit a copy of Form 1098 or records of property taxes paid to document that they have owned a home for five consecutive years out of the past eight.
Because of the required attachments, the tax return cannot be e-filed. With the extra processing required for the paper returns and document verification, refunds for these credits will probably not begin to occur until late March.
Always remember: if you need help navigating the traffic jams of the tax highway, our tax department is here to help you find the way.