CNNMONEY.com recently reported that homebuyers who purchased their homes after November 6, 2009 and are looking to receive their tax credit may be waiting longer than expected. In fact, some experts are reporting that the delay may be as long as four months! This is due to some changes which were made by Congress on November 6, 2009 when the tax credit was expanded and extended. Those changes will now require the homebuyer to file a paper return and provide proof in the form of proof of residency, a signed mortgage statement and a driver’s license.
Previous to the November 6, 2009 law changing, homebuyers were able to e-file and submit amended returns and get their tax credits back quickly. All of that changed; however, when scammers started abusing the system. The first person convicted of this crime, was tax preparer, James Otto Price III, who falsely claimed the credit for 15 clients!
To be eligible to receive the tax credit (up to $8,000 for first-time buyers and up to $6,500 for non-first-time buyers) buyers must have a contract of sale signed by April 30, 2010 and go to settlement by June 30, 2010.