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Homebuyer Tax Credit Delays


Just posted on my Local Market Information page (http://www.ehomesbymorris.com/custom3.shtml), an article from today’s Wall Street Journal Market Watch:  Home-buyer tax-credit refunds delayed for months.

Obviously, that isn’t really “local” news, but it is important to me that my clients and prospective clients are never surprised by information that I could have shared with them. 

This administrative snafu really shouldn’t be surprising, but many of the checkpoints now requiring an audit seem very predictable.  In other related articles, there have been stories of

  — “Taxpayers” as young as four years old requesting this tax credit.  Form 5405 and all tax forms require a SSN of taxpayer ID of some kind, from which DOB should be easy to verify — automatically. 

  — Others, it turns out have owned a home within the past three years, or even own another home now.  It seems to me that in most cases this was more than just an innocent oversight.  Audit away, IRS.  Condoning or ignoring these makes it much harder for folks who play by the rules.

  — Many taxpayers have apparently requested the “first-time homebuyer tax credit” without actually buying a home!  Again, I can’t imagine anything but intentional fraud here.  But this should have been “falling off a log” easy to avoid:  All year I have advised my clients to include a copy of the HUD-1 Settlement Statement, confirming their completed purchase, along with Form 5405.  To me, it was simply a common sense way to minimize delays in processing tax credits for my clients, but …

The basis for this entire, very expensive, program was to encourage people to buy homes.  Why didn’t somebody at IRS think to require that the most basic, and readily available, proof that such a transaction occurred should be part of every filing?

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About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

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