The IRS has provided additional clarification regarding documentation requirements on the First-Time Homebuyer Credit.
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The IRS encourages buyers seeking the homebuyer credit to sign the settlement statement when they file their tax return — even in cases where the settlement form does not include a signature line.
The IRS recognizes that elements of the settlement document, often a Form HUD-1, may vary from jurisdiction to jurisdiction and may not reflect the signatures of both the buyer and seller.
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While the Form 5405 instructions indicate that a properly executed settlement statement should show the signatures of all parties, the IRS has clarified that it will accept a settlement statement if it is complete and valid according to local law. In areas where signatures are not required on the settlement document, the IRS encourages the buyer to sign the settlement statement prior to attaching it to the tax return.
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In situations where the signature of the seller is not on the settlement document, the IRS advises the buyer to still sign the document.
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Link:
Information on the First-Time Homebuyer Credit
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