Posted on: 21st Nov, 2009 01:01 pm
it was learned that thousands of taxpayers who were not entitled to the first time home buyer's credit of up to $8000 have actually gone ahead and claimed it on their tax returns.
some people claimed the credit even though they hadn't purchased a home at all, and others weren't first time home buyers, yet claimed the credit. in addition to that, an audit determined that almost 600 tax payers younger than the age of 18 claimed the credit, including one who was 4 years old.
as a result, the new legislation signed by President Obama on November 6 contains provisions to reduce fraud. anyone who is listed as a dependent on someone else's tax return is prohibited from claiming the credit, and taxpayers must be at least 18 years of age on the date of the purchase of a home to claim the credit.
also, taxpayers will now be required to attach a copy of their settlement agreement to their tax return. should a copy not be attached, the irs has the authority to adjust the amount of the credit granted without the need for an audit.
please beware: if you have any questions about this legislation and your eligibility, it is advisable that you contact your tax advisor or the irs directly.
some people claimed the credit even though they hadn't purchased a home at all, and others weren't first time home buyers, yet claimed the credit. in addition to that, an audit determined that almost 600 tax payers younger than the age of 18 claimed the credit, including one who was 4 years old.
as a result, the new legislation signed by President Obama on November 6 contains provisions to reduce fraud. anyone who is listed as a dependent on someone else's tax return is prohibited from claiming the credit, and taxpayers must be at least 18 years of age on the date of the purchase of a home to claim the credit.
also, taxpayers will now be required to attach a copy of their settlement agreement to their tax return. should a copy not be attached, the irs has the authority to adjust the amount of the credit granted without the need for an audit.
please beware: if you have any questions about this legislation and your eligibility, it is advisable that you contact your tax advisor or the irs directly.
I will bet this has happened thousands of times.