Written By: Karen Deis
Like most government legislation, the Nov 6, 2009 homebuyer tax credit extension created more questions than answers. However, according to Doug Geissler, CPA, the IRS is literally writing the “refund rules” as they go along.
Unbeknown to homebuyers, real estate agents and the mortgage industry, the IRS is giving behind-the-scenes instructions—that are not available to the general public—to CPAs and tax advisors on how to file for the homebuyer tax credit after Nov 6, 2009. It will be completely different than what you might have advised your clients previously—and your clients are NOT going to like these changes!
The first shocker? Your clients cannot file a 1040 EZ to claim the tax credit! Nor can they file tax returns electronically if claiming the tax credit!
Read exactly what and how the MAGI is figured; how the forms need to be filed; what docs need to accompany the tax return and the estimated time the IRS is projecting for the tax credit refund!
In addition, links to the most recent IRS Updates and FAQs are provided.
Read More
