MAMalody Posted September 10, 2007 Report Share Posted September 10, 2007 I received the following query from a client this morning via e-mail. "I have received documentation from the department of internal revenue servies indicating that I have been selected for examination due to involvement and participation in the HART Down Payment Assistance program. Please advise as I do not know what HART program is all about and that I have made a contribution to HART in relation to the sale of a house. I did not make any contributions to HART as far as I know." I must admit that I have not hear of this. Can somebody clear this up for me? Mike Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted September 10, 2007 Report Share Posted September 10, 2007 I received the following query from a client this morning via e-mail. "I have received documentation from the department of internal revenue servies indicating that I have been selected for examination due to involvement and participation in the HART Down Payment Assistance program. Please advise as I do not know what HART program is all about and that I have made a contribution to HART in relation to the sale of a house. I did not make any contributions to HART as far as I know." I must admit that I have not hear of this. Can somebody clear this up for me? Mike I have never heard of it either but I found this on google: "HART Gift Program Website Housing Action Resource Trust (HART) is a California 501© (3) non-profit housing and community development organization located in the City of Rancho Cucamonga, CA. HART was established in 1995 with a mission to provide affordable housing and homeownership opportunities throughout the United States. HART launched its Down Payment Assistance Program in July of 1998. Since the inception of the HART Gift Program, thousands of families across the nation have realized the dream of homeownership with a down payment gift from HART! The HART Down Payment Assistance Program assists prospective homebuyers nationally who qualify for a first mortgage loan, but require the down payment and closing costs necessary to purchase a home. HART is also actively rehabilitating homes in revitalization areas and developing affordable housing in many communities across the country. With the Flexibility of the HART Down Payment Assistance Program, the dream of homeownership is a REALITY." There were a number of organizations listed using the term HART, but this seems to fit the email you received. Since the IRS is concerned about it, there may be something fraudulent about it. Gene Quote Link to comment Share on other sites More sharing options...
Pacun Posted September 10, 2007 Report Share Posted September 10, 2007 I have never heard about the HART program but I have heard that the IRS WILL NEVER EVER send emails about audits. So, please know that and share it your clients. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted September 10, 2007 Report Share Posted September 10, 2007 I received the following query from a client this morning via e-mail. "I have received documentation from the department of internal revenue servies indicating that I have been selected for examination due to involvement and participation in the HART Down Payment Assistance program. Please advise as I do not know what HART program is all about and that I have made a contribution to HART in relation to the sale of a house. I did not make any contributions to HART as far as I know." I must admit that I have not hear of this. Can somebody clear this up for me? Mike Mike, I bought my first home under a program similar to what is described by Gene, except it was not a gift but a loan. It was basically a piggyback loan of the 20% down payment. The program was called DAP - Downpayment Assistance Program - and was intended for first time homebuyers. Worked a miracle for us as I was able to buy a new home with good credit and closing costs while I was still a senior in college. It sounds like there is a private group or foundation in SoCal that has attracted the attention of the IRS and your client was linked to them in some way. Has your client bought or sold property in the last couple of years? Is it possible that there is some SS# mix up? Could this group have reported some "creative" items on a closing statement where your client was involved in the transactions? I would advise the client to give you a power of attorney and stay out of any conversation with the IRS for the time being. You talk to the IRS and then advise the client if he needs the services of an attorney or if it is something the client can handle. Something smells - I would tread very lightly through this. And be careful not to make the client's problems your problems. Good Luck. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
MAMalody Posted September 11, 2007 Author Report Share Posted September 11, 2007 I received a faxed copy of the IRS correspondence today. My client did sell a condo in '05 (the year in question). The figures on the return do not match the IRS figures and the diff. is supposed to be because of this Hart Program. They then say that the amount in questions was deducted as a contribution. The contribution was a church contribution per the return. I am trying to get original docs not to analyze this better. Client does not remember this program. we'll see. I will back with more info when I have it. Client lives in WA. Once I see what this is, I will know what way to jump. Mike Quote Link to comment Share on other sites More sharing options...
jainen Posted September 11, 2007 Report Share Posted September 11, 2007 >>the amount in questions was deducted as a contribution<< The IRS considers this a tax scam designed to claim a charitable contribution for not getting as high a sale price as you wanted. Prepare your client to lose this one. http://www.irs.gov/charities/article/0,,id=156682,00.html Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.