KEYWEST_RICKS Posted March 18, 2011 Report Share Posted March 18, 2011 has anyone seen a refund yet from someone who was paying back the 1/15th of the first time homebuyers credit? client called this am to say she saw on the news that irs is saying those people who filed will have to file an amended return to get their refund?? i have seen nothing on the news irs web site etc about this. has anyone seen a refund yet? or seen anything about having to amend the return?? thanks jeff Quote Link to comment Share on other sites More sharing options...
chadlonetree Posted March 18, 2011 Report Share Posted March 18, 2011 No I have not. I was told for 3 efiles (I called the IRS) that I filed on 02/15 that I can expect the refunds on 03/25. Who knows... Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 18, 2011 Report Share Posted March 18, 2011 I had two, and their refund dates were later than usual due to "processing delays," but they got the refunds. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 18, 2011 Report Share Posted March 18, 2011 I have had at least a couple that have received their refunds already. Had one who had his refund increased by 500.00. Took a look at the return where he received the original credit. Turns out he doesn't have to payback (his date was for a purchase in Feb 09, thus qualifying for the 8,000 credit, however previous preparer didn't wait to file his return until the corrected form was available so only claimed 7,500.) I am going to ammend his 08 and see if I can get him the extra $500.00 that he was due. Funny thing that IRS caught the payback mistake but didn't catch the mistake on the original credit request. Deb! Quote Link to comment Share on other sites More sharing options...
chadlonetree Posted March 18, 2011 Report Share Posted March 18, 2011 Just got this email from IRS: Subject: IMF – 1040 e-file (Legacy) – Form 5405 ________________________________________ Attn: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs When e-filing a repayment of the First-Time Homebuyer’s Credit, we recommend the following actions to expedite processing: When Married Filing Jointly for TY 2010 and only one spouse received the homebuyer credit for TY 2008, we recommend filing one Form 5405 showing the taxpayer SSN who received the credit and is making a repayment. When filing Married Filing Jointly for TY 2010 and the homebuyer credit was received from a Married Filing Joint return for TY 2008, we recommend filing two Forms 5405; one for each taxpayer SSN and making a repayment for each form based on ½ of the total credit received by the spouses. For repayment purposes, the credit received for TY 2008 is considered split equally between the two spouses when taxpayers received the credit on a joint return so filing two distinct forms when repaying the credit should help expedite processing. Quote Link to comment Share on other sites More sharing options...
chadlonetree Posted March 18, 2011 Report Share Posted March 18, 2011 Just got this email from IRS: Subject: IMF – 1040 e-file (Legacy) – Form 5405 ________________________________________ Attn: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs When e-filing a repayment of the First-Time Homebuyer’s Credit, we recommend the following actions to expedite processing: When Married Filing Jointly for TY 2010 and only one spouse received the homebuyer credit for TY 2008, we recommend filing one Form 5405 showing the taxpayer SSN who received the credit and is making a repayment. When filing Married Filing Jointly for TY 2010 and the homebuyer credit was received from a Married Filing Joint return for TY 2008, we recommend filing two Forms 5405; one for each taxpayer SSN and making a repayment for each form based on ½ of the total credit received by the spouses. For repayment purposes, the credit received for TY 2008 is considered split equally between the two spouses when taxpayers received the credit on a joint return so filing two distinct forms when repaying the credit should help expedite processing. Just called IRS again regarding this. They said that anyone who filed with the above recommendations should not experience a delay. All others, no matter when they were filed, should expect a 30 day delay from TODAY!!! Angry client calls are coming... Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 18, 2011 Report Share Posted March 18, 2011 That is going to be a bit tricky since when I try to add a second 5405 on ATX I get an error message that says the form may not be duplicated. :wall: Quote Link to comment Share on other sites More sharing options...
KEYWEST_RICKS Posted March 22, 2011 Author Report Share Posted March 22, 2011 got a text from the client today stating that letter was received from IRS... says could be may 15th before she gets her refund. any one else see one of these?? jeff Quote Link to comment Share on other sites More sharing options...
tkamba Posted March 22, 2011 Report Share Posted March 22, 2011 A client of mine received the letter to repay the loan beginning this year, which was correct, I filed the original return. He received his refund last week but they did not withhold the $500 I told the IRS to hold for the repayment? Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 22, 2011 Report Share Posted March 22, 2011 A client of mine received the letter to repay the loan beginning this year, which was correct, I filed the original return. He received his refund last week but they did not withhold the $500 I told the IRS to hold for the repayment? This likewise happened to a client of mine. I had not prepared the return when he purchased the home and requested the credit. I asked the client to bring in all his paper work and guess what, he didn't have the payback credit, his purchase qualified for the refundable credit, not loan. Whoever prepared his return in 08 did not waite for the form to be updated, (if you remember the credit was extended and the nature changed early in 08 and for any purchases made in 08 whereby the client had not yet filed, we could claim it on the current year or ammend, if we claimed it on current year we had to wait for the form to be corrected to change the credit from 7500.00 to 8,000.00. My clients return was prepared on the old form claiming the credit for 7500.00. I'm going to try and ammend to get the additional 500.00. The bottom line is even though my client thought he owed the 7500.00 loan payment of 500.00 he did not. Perhaps this is the situation with your client. Deb! Quote Link to comment Share on other sites More sharing options...
JRS Posted March 23, 2011 Report Share Posted March 23, 2011 ATTN: Tax Professionals The IRS today released information on processing issues that are impacting a small percentage of tax returns involving repayment of the First Time Homebuyer Credit (FTHB), primarily involving 2008 home purchases. While most of these returns are processing normally, the IRS recognizes the hardship caused by delayed refunds and it has assigned additional staff and resources to address the issues promptly. 1. Married Filing Joint taxpayers who received the FTHB credit on a 2008 purchase The IRS projects that some of these taxpayers will receive their refunds as soon as April 5 and others the following week. 2. Taxpayers who received the FTHB credit and are now reporting the sale or disposition of their home The IRS projects that taxpayers in this situation should receive their refunds by the end of April. 3. Taxpayers who received the FTHB credit and are attempting to pay back more than the amount required (typically $500) The IRS projects that taxpayers in this situation should receive their refunds by the end of April. The time frames above assume there are no other issues impacting the taxpayer refund, including federally mandated offsets to refunds. It is important to note that taxpayer returns claiming a home purchase in 2010 are not affected, and those returns are being processed as are the vast majority of other homebuyer returns. Additional information is available on IRS.gov. Because the IRS is aware of the issue and working to resolve it, taxpayers do not need to contact the Service regarding this matter. The IRS apologizes for any inconvenience. Quote Link to comment Share on other sites More sharing options...
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