Tax Credits and The IRS Auditor

Loyal blog reader and FB buddy, Armen C, posted the following article to my Fan Page- “Want to Get Audited”.

It is an interesting article about the heightened possibility that you will be subject to an IRS audit if you claim this credit. Food for thought for those of nefarious tendencies.

However, I know that does not apply to you! I thought the following excerpt was useful:

To help prevent fraud, homebuyers are required to include a settlement statement, also known as a HUD statement, with their tax returns. Longtime homeowners have to provide proof they have owned their current home for five years. That could be done with old property tax bills, said Jackie Perlman, an analyst at the Tax Institute at H&R Block.

“Understand your obligation to provide documentation and provide it, it’s as basic as that,” Perlman said.

The documentation requirements mean that taxpayers applying for the credit cannot file their returns electronically, which also delays refunds.

There you have it. Use the Force, avoid the Darkside and provide the right documentation- $8,000 shall be yours.