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Home Buyers Face Tax-Credit Delays

“Home buyers who purchased a property after Nov. 6, 2009, when the extension and expansion of the first-time and move-up home buyer tax credit took effect, have reportedly been unable to get their rebates—or even file for them—because paperwork isn’t available.

Robert Dietz, an economist with the National Association of Home Builders, says the delay is apparently caused by the Treasury Department’s inability to quickly create new documentation that filers could use to prove they actually bought a property.

Previously, all a home buyer had to do was file a form that said they’d purchased a property. No proof was required. As a result, there were thousands of reports of fraud. This time around, the IRS is seeking ways to force home buyers to prove their eligibility.

Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, says it probably will be another three months before the problem is resolved.”

Source: CNNMoney.com, Les Christie (10/14/2010)