Hope for 2008 First Time Home Buyer Credit Applicants

The IRS first time home buyer credit for 2008 homeowners, which must be paid back for home purchases in 2008, has been held up due to many fraudulent claims being sent to the IRS - contact a tax advocate to expedite your amended return. Because I get a refund, I file my taxes in January. I sent an amended return in February, when I found out about the first time home buyer credit. Please note, the IRS excludes the fact that you need to submit supporting documentation to accompany your Form 5405; i.e. your deed and settlement statement. Failure to provide this documentation further delays your claim.

The first time home buyer credit, for 2008 homeowners, that was established to offset the costs of down payments and improvements has taken a long time to reach the new homeowners. I had well problems the first month in my home and it cost me $1,000. After paying unanticipated $1,000 school/real estate taxes at closing (because I bought in July), the additional $1,000 for my new well pump really hurt financially.

My amendment was processed into the system in the end of February. I contacted the IRS tax advocate service in May, after not receiving my credit after the projected 10-12 weeks. For me, anticipating this money cost me undue hardship. It's like being approved for an interest-free loan and expecting but not receiving the funds until months later. The impatient being that I am, I purchased a hot tub in March on credit, with the anticipation of paying it back in April. I blame those that filed fraudulent claims, my own impatience, as well as the IRS, for not foreseeing the influx of claims they would receive for this credit and preparing for it.

It's unfortunate for the economy that the IRS was unprepared to handle the home buyer credit because I think the economy would have bounced back quicker if they had put the money in the hands of consumers faster. If you are still waiting for your first time home buyer credit, contact an IRS tax advocate. The number is(877) 777-4778. While it doesn't seem to me that this expedited my claim, it is good to have a representative working on your behalf to push the IRS to review your claim.

I know from researching the web that I am one of many thousands that have been awaiting their credit. I had actually succumbed to the fact that for whatever reason, I would not receive the credit. I finally received noticed from the IRS and my tax advocate that my check will be mailed October 2, 2009.

This goes out to all those still waiting. If your claim is legit hang in their, hopefully your money will soon be on its way too! I wish the 2009 homeowners better luck in receiving their homeowner credit in a more timely fashion.