I bought my first home for $76,000 in April 2010 and my tax cpa sent in the correct forms with a copy of the contract for deed so we could claim the first time home buyer tax credit.
Four times the IRS requested we send in the forms as they hadn't received them. Four times they asked for a copy of the HUD and four times my cpa told them contract of deeds don't come with a HUD and that the contract for deed we'd sent in had all the information they were requesting. Each time the IRS requested my cpa resent the forms in.
Enough time had passed and that I had evidence showing hardship that my cpa could act on my behalf on filing form 911/hardship and take my claim to the taxpayers advocacy.
The response has been that my claim has been denied based on the following verbiage that was in the contract for deed.
Downpayment of $4,000 (to be tendered upon receipt of tax return proceeds) leaving a balance of $72,000
My total expected tax return was around $9,700 which included $7,600 first time homebuyer tax credit. The balance of $1,900 was sent to me several months ago when the IRS initially denied my claim based on they hadn't received the paperwork for the property purchase even though my cpa had sent it in four times.
I'm at my wits end and about to have my utilities turned off, my car repossessed, and am unable to make my mortgage payments. There is an external influence which means I'm unable to get employed at the moment which will take another three or four months to pass before I can rejoin the workforce.
Apparently the next step is to wait for the IRS to put the latest denial in writing so we can appeal it but that doesn't help me now where I'm about to lose everything. I don't have the support of a family around me and will end up homeless!!!
Can somebody point me to a tax law that shows I haven't done anything wrong that I can take back to the taxpayers advocacy? As I understand it the taxpayers advocacy are funded by the IRS so not entirely independent...