Alright, before I get into detail with my situation let me start by saying that I understand the seriousness of this crime, I do not need a lecture, I did the crime so I’m willing to face the consequences. With that being said, HELP! I heard about a new tax credit for this year, the First Time Home Buyer credit. It gives new home buyers a 00 credit. The home had to be purchased between April 2008 and June 2009 to qualify. I didn’t purchase a home, but honestly I needed the money so I took the credit. Now, I filed my taxes through TurboTax online on 1/21 and it was accepted the same day. My state return came about a few days later via direct deposit. Checked the IRS Where’s My Refund page all the time, and my expected DD date was always 1/30, didn’t change like I saw everyone else’s has been. Didn’t get a deposit but I didn’t worry since everyone on here reported the same thing. Then today I log on to WMR and I freeze up: There is a delay in processing your tax return. It mentions code 1121, which I looked up and found out to mean the computer spit out my return for review by a human…aka the first phase of an AUDIT. I’m f**ked! Ok anyway, I called and I’m supposed to get a letter in a few weeks, ‘after my account is reviewed’. So, any advice? Since you can claim the credit on your 2008 return if you plan to purchase a home in 2009, I figured i’d be fine. Problem is I goofed up and put on my return that it was indeed purchased in 2008. What do you think caused the flag for an audit? Could it be easy as saying it was a mistake? Also I figured it was because I’m under 21, made under ,000 last year, and didn’t include two W-2′s (planned on filing an amendment). I know the maximum punishment for this behavior is a 0,000 fine and 3 years in jail. Definitely can’t afford a lawyer. Should I just expect a slew of threatening letters from the IRS requesting my presence and supporting documentation, or will I get an actual knock on my door from the IRS? If anyone has been in this type of situation I’d love to hear your experience. And yes, lesson learned.
I’ve never done this before, no. Since any home purchase up till 06/2009 qualifies, can I not say I messed up the purchase date and just buy a house this year? And yes, you can do that, just google First Time Home Buyer credit, and look up the FAQ’s on the first page. You can claim the credit on your 08 tax returns if you plan to purchase a house by 06/09. Thanks for the help ya’ll!
See www.federalhousingtaxcredit.com FAQ #19. If I were to still try and take the credit, assuming I were to buy a house this year, would I have any problems? Because technically the IRS can’t say whether or not I’m going to purchase a house this year. There wouldn’t a need/way to provide a Form 1098 in that case, right? Should I file an amendment now or wait for this letter and the possible audit situation? Also, you have to provide a purchase price of the home, so what would I put since I don’t know the cost of the home I PLAN on buying? I want to THANK YOU ALL so much for the advice, very comforting as I was freaking out earlier! 
Don’t do anything without a tax lawyer…..Let the tax atty do all the talking.
Oh my goodness what were you thinking? You must look good in stripes.
The only thing to do is when IRS sends the letter which will ask for supporting documents, just let them know upfront that you committed fraud. Surely they will go easy on you since it is your first time, it is the first time right?
Good luck! Let us know what happens.
just play stupid ( which looks like it wont be hard to pull off ) and tell them you mis-understood the question, tell them you thought it was for renters like you are !!!!
refile an amended return with the correct information.
play dumb. are you 18?
I think what red flagged them is if you are claiming this credit you would have had a form 1098 sent to you and a copy to the IRS if you had a home. Also your wages and other obvious things.
Play dumb as dirt and act like you had no idea of your intent.
I have sons your age and I am worried for you.
NEVER ADMIT GUILT! act dumb child!
Ok first of all. Don’t panic. Here is the First time home buyer info:First-Time Home-buyer Credit
If you are a first-time home-buyer, you may be able to claim a one-time tax credit of up to $7,500 ($3,750 if married filing separately) or 10% of the purchase price of your home (whichever is smaller). You may be able to claim the credit if:
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You purchased your main home in the United States after April 8, 2008, and before July 1, 2009, and
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You did not own any other main home during the 3-year period ending on the date of purchase.
You can choose to claim the credit on your 2008 Form 1040 for a main home purchased after December 31, 2008, and before July 1, 2009. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
Who cannot claim the credit. You cannot claim the credit if any of the following apply.
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Your modified adjusted gross income is $95,000 or more ($170,000 or more if married filing jointly).
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You are, or were, eligible to claim the District of Columbia first-time home-buyer credit for any taxable year. See Form 8859.
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Your home financing comes from tax-exempt mortgage revenue onds.
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You are a nonresident alien
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Your home is located outside the United States
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You sell the home, or it ceases to be your main home, before the end of 2008
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You acquired your home by gift or inheritance
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You acquired your home from a related person. A related person includes:
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Your spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc
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A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation
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A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interests
Repayment of credit. You generally must repay the credit over a 15-year period in 15 equal installments. The repayment period begins 2 years after the year in which you claimed the credit. Therefore, if you claim the credit on your 2008 tax return, the repayment period begins in 2010 and you must include the first installment as additional tax on your 2010 tax return.
If your home ceases to be your main home before the 15-year period is up, you must include all remaining annual installments as additional tax on the return for the tax year that happens. This includes situations where you sell the home or convert it to business or rental property.
For exceptions to the repayment rule, more information about the credit, and how to claim the credit, see Form 5405, First-Time Home-buyer Credit.
But I do not think its because of that. I think it is because of you not filing w2′s. If this is the case tell them you forgot and they were not sent to you until after you filed. If they want you are willing to do an amendment with them. They will not throw you in jail or take you to court. You did your taxes before jan, 30. January 30 is the last day for companies to send w2′s out. If they inquire about them just say yes you got them late. No biggie. as far as the credit. YOU have 15 years to pay it back. Also since you made less than 15k You should get all the taxes you paid in back.
Do not worry. Most of the time they will make adjustments with out needing to talk to you.
go to irs.gov you need 1040X amendment. this corrects your MISTAKES.
http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&qm=0&rf=0&oq=&qt=1040X&search.x=19&search.y=10
then go to your states tax site and type in the search, amendment
file these before 4/15 and you will be ok.
The IRS will notify you on what to do. DO IT! But have these ready to fix it. Telll them you are filing an amendment because you screwed up.
You need to relax and just wait. You will get a letter in the mail telling you what the problem is and what they plan on doing. Likely they will revoke the credit and you will not get the refund you were anticipating. You need to just wait for the IRS to contact you or you need to call the IRS and ask them what the problem is. You cannot play stupid. They hear people say all the time they didn’t know…well you knew you were cheating and you just need to be apologetic. You aren’t the 1st you won’t be the last.
You dolt, you had to buy the house BEFORE claiming the credit. Ain’t no "plan" to do it option.
The fraud on this credit must be staggering…and you can bet the IRS personnel are going to become experts in deciphering every settlement statement format in the country. (You will be asked to fax it in to prove you bought the house.)
If it makes you feel any better, I DID buy a house, and I’m getting the same 1121 delay notice from the IRS. I guess they are manually entering all of them.
DON’T WORRY I AM IN THE SAME BOAT EXCEPT I WAS A YR OFF OOPS IT WAS MY FIRST HOUSE… i TOO GOT A 1121 I THINK ALL OF US ARE IN THE SAME BATCH.. I WAS SUPPOSED TO RECEIVE MINE THE 30TH NOW WAITING FOR THE LETTER CP05"
I WAS WORRIED BUT ITS NOT A CREDIT ITS A LOAN SO I DON’T THINK ITS A BIG DEAL.. JUST THINK HOW MANY WILL CLAIM THE NEW 15,000 IF IT PASSES…..I COULD BE WRONG BUT LETS HOPE WE ALL GET OUR REFUND SOON!
LETS KEEP EACH OTHER POSTED:]
I too purchased a new home, and this is probably the first year I haven’t fudged some numbers! I did it completely by the book, but I assume everyone who claimed the credit is getting checked out. We will have to wait for letters and if everyone can post results that would be great so we can all know what to expect! GOOD LUCK to everyone!
Well, i can tell you that i think you may have some troubles coming your way. See, the form 5405(first time home buyer form) asks specific questions about the actual purchase price, and date of closing.
i, on the other hand, went to an accountant this year for the first time in 7 years to have mine done. Since i bought my house, and closed on it 2 days after the start date of this program(closed april 11th 2008). I just wanted to make sure everything was done right.
Well, here it is over 2 weeks later, and my federal still hasnt been accepted by the IRS. Kind of makes me think that they are delaying all of the first time home buyer applications.