Today TaxMama® hears from MelissaMarie in the TaxQuips Forum, with a new problem. Let me summarize. She sold her home at a loss last year. She had bought it in 2008 using the Homebuyers Credit – which was required to be repaid – unless she sold the home at a loss. This year, the IRS is holding up her refund because she didn’t include the annual $500 repayment on her tax return – which she did not owe! What can she do?
You have my deepest sympathy. The whole first time homebuyers credit thing was so messed up when they set it up, I am not surprised that there is such mess at the back end.
Many people and tax pros are running into problems with it. Since this is affecting so many people, I suspect that the Taxpayers Advocate Service may not be willing to take it on. But ask them. They did a great job on the front end.
You can call them at 1-877-777-4778. And since it’s been this long – and you have been tracking it (keep notes), they may be willing to step in.
NOTE TO READERS: If you or your clients are having problems with the Homebuyers Credit this year, please let me know. I am working on an article (and talking to the IRS) to find ways to help avoid this problem in the future. (Please post your responses in the TaxQuips Forum – here.)
And remember, you can find answers to all kinds of questions about the first time homebuyers credit and other tax and business issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed version of TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the new TaxQuips Forum .