The IRS is working on solutions to problems that are causing delays in the processing of certain categories of income tax returns filed by individuals who claimed the homebuyer credit. The affected taxpayers do not need to contact the IRS or take any other action; they simply need to expect some delays.
Here is the text of the IRS alert on this issue:
The IRS today [March 23, 2011] 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.
