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.
• For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
• For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

If you are one of the many who have lived in your home for a consecutive five year period of the past eight and are claiming the tax credit on your purchase of a new principle home, note that the IRS has also stepped up your compliance checks for using the tax credit. In order to prove that you have lived in your home for the five-consecutive-year period make sure to include the following documentation:

• Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
• Property tax records or
• Homeowner’s insurance records.

If you do file your tax credit forms early, expect a longer turn around time as the IRS will be performing critical systematic checks to deter fraud. Normally it takes anywhere from four to eight weeks to have your refund claimed, but for those of you filing early, expect to start to see your refunds issued toward the end of March.

If you are moving and want to take advantage of the tax credit before it expires, make sure to head over to  Heron Bay Golf & Country Club. This Atlanta lake community offers  a multitude of amenities for everyone. You can enjoy the warm spring weather while walking by the lake or wandering the nature trails in your new community.

Don’t wait because this year is fast moving and your opportunity will soon be past.