Archive for February, 2010

IRS issues new guidelines on obtaining home buyer tax credits.

Sunday, February 21st, 2010

This article comes from the L.A. Times. “The agency clarifies documentation that taxpayers will need in an effort to curtail widespread fraud in the program. Reporting from Washington - Despite blizzards that shut federal offices for days, the Internal Revenue Service issued new guidance Feb. 12 on the two tax credit programs that are powering the country’s real estate markets — the $6,500 credit for repeat buyers and the $8,000 first-time buyer credit.

The new IRS policy clarified documentation that taxpayers need to submit to successfully obtain either credit. When Congress revised the credit programs in November, it ordered the IRS to tighten its rules and monitoring to curtail widespread frauds that had emerged earlier in 2009.

These included fictitious home purchases in which people claimed and received $8,000 checks from the government on transactions that had never occurred. Click here to read the rest of this article.