It looks like home buyers looking to take advantage of the recently extended tax credit have a longer wait ahead of them than those who got the credit the 1st time around.
Due in part to scam artists filing false claims, and the IRS being unprepared for the extension, it can now take months instead of weeks for home buyers to receive the credit – and they won’t be able to file electronically.
E-file is out, and snail mail is in.
Buyers looking to claim the credit now will need to file their tax returns by mail and include documentation along with a new 5405 tax form. The IRS claims that the need for the new documentation, and lack of e-file is the result of scam artists gaming the system. The new documentation includes proof of residency, a signed mortgage statement and drivers license.
The delays effect those who bought homes after November 6th, 2009. The IRS was unable to process tax credit claims until recently.
The tax credit was originally set to expire on November 30th, but was extended to April 30, 2010 due to continued weakness in the housing market. The April 30 deadline is for contracts to be signed, buyers will have until June 30th to close.
This can be such a huge upset for those who are actually first-time home buyers…We also wrote an article about this recently that also talks about the steps it takes to file your tax claim. http://www.gobankingrates.com/tax/first-time-home-buyers-may-see-refund-delays/
[...] so it’s a logical conclusion that people are no longer as motivated to buy a house since the new home buyer tax credit expired in [...]