The IRS has recently released Form 5405. Why is Form 5405 special? This is the form you’ll need to fill out to take advantage of your Homebuyer’s Tax Credit you used to purchase your new home!

The IRS will begin processing these forms beginning in mid-February. Make sure to send your home ASAP to be at the top of the pile. Make sure to pay close attention to all of the details as Form 5405 will now require additional documentation in order to prevent fraud. Because of these additional documents, you’ll need to file a paper tax return rather than filing online.

Additional documents include:

• A copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement. (more…)