Grrr irs

[Xavier]

I am so angry right now. I bought my home in 2008 and took the tax credit for first time home owner. I just got a letter yesterday saying I owe it all back. But, the ones that bought their home in 2009 don't have to. I don't understand and now owe $500 to the government for the next 15 years. And if I sell before that I have to pay the balance back immediately upon sale. HOW IS THIS EVEN LEGAL!!!

[fresh]

Wow, I can not even believe what I am hearing! I can not believe that they were able to do that. Think about all the people who got a credit that year who will be paying modo taxes. They schemed their way in to getting millions from the tax payers.

[Classical Me]

I cannot imagine what new homeowners are going through. I consider myself to be extremely lucky that we own our home now and don't have to worry about mortgages and loans.

[downhome]

I would definitely be contacting a tax attorney to figure out what is going on here. It seems kind of fishy. It is even possible that the IRS made a mistake. They are known to do that from time to time.

[Richard]

It is even possible that the IRS made a mistake. They are known to do that from time to time.

I don't think the IRS ever makes mistakes....they are infallable and perfect in every way!

Sucks to hear about your situation though. Maybe one day this great country will wake up and take it back. Oh wait, tomorrow is election day!

[jimbrown]

I do not think that you understand the credit and how it works. It was/ is essentially a loan you got to pay it back and that was always made clear.

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2008

[Robertbrown]

The letter gives a deadline to respond. In the meantime call the IRS and be sure you have your paperwork handy. A representative will walk you through it. You'll be on the phone for a while so pack a lunch. Do this before you contact any lawyers because....they are lawyers.
I wouldn't worry too much about it until you have talked to a taxpayer advocate, You may have not filed the proper forms and just need to refile and pay a penalty.

[jml755]

I do not think that you understand the credit and how it works. It was/ is essentially a loan you got to pay it back and that was always made clear.

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2008

Wow, can't dispute that. It's in black and white. Good post Jim. Sounds like Xavier (and many other new home buyers in 2008) didn't read the fine print. If it was me, I just would have skipped applying for the credit. In any case, if you bought a home in 2008 or 2009, you probably got a pretty good deal, considering the state of the housing market the last few years.

So, Xavier, your anger should not be directed at the IRS (this time LOL). The people to blame are Congress (who enacted the so-called credit) and yourself (for falling for their bait-and-switch).

[farmhand]

I would still be angry also. I don't believe those that took the tax credit in 2009 have to pay it back just the ones in 2008 and that is pretty unfair. At least you don't have to pay it all back at one time though, unless you sell your house or get it repossessed. Just one more way for the government who can't budget money in the first place to get more.

[Classical Me]

You definitely need to follow through as others have suggested here. There could be a mistake but it's up to you to challenge them and make sure. They are very busy and most likely understaffed.