Delays in Receipt of $8,000 Tax Credit
30 Oct2009
Filed Under Buying, Housing Market · Tagged: 8000 tax credit, government efficiency, stimulus · Print This Article
Wherever there is free money, there are people trying to take advantage. Reports have shown that fradulent applications for the $8,000 tax credit have caused the IRS to need to go back and investigate all the already-filed claims as well as check all future ones more carefully.
This simply means that the receipt of your tax credit will probably be delayed. This will probably be true for people who filed amendments to their 2008 returns, and will also probably be true for those who file for the credit with their 2009 returns.
The reason this happened? Likely because the paperwork is so simplistic it’s making it easier for some people to cheat.
This is a good time to remind you to make sure all your information is filled out correctly on your form since they are being checked so carefully. You don’t want an incorrect or sloppy form to inhibit you receiving your funds. As long as you do qualify, you will receive your refund, it just might take a little longer.
Another problem that is occurring is people are receiving too much money. Remember this credit is only ten percent of the value of your new home, up to $8,000. If you get extra money mistakenly, it’s not a free bonus — you can’t keep it! You can do the following things:
- If you receive the money by check, don’t cash it to avoid interest charges. Call the IRS at (800) 829-1040 or send a letter explaining the matter to the IRS center where you filed the return. Include the Social Security number, tax year and name as shown on the return. If you want the money now, cash the check and send the IRS the difference, and you’ll pay a little interest.
- If you receive the money through direct deposit, quickly write a check for the excess and send it (and a note explaining the situation) to the IRS at the center where you filed or e-filed your return. Expect to be charged interest.
Hopefully you’ll have no problems with your tax credit. This is really a huge credit (which is why people are trying to cheat). When you finally get it, put it to good use!
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