Another First time Home Buyer Question

[NotEasy]

I think everyone knows by now that in order to apply for the FTHB credit, the taxpayer needs to attach the HUD-1 statement.

Well, my client does not have a HUD-1 statement. When I called the escrow officer who handled the transaction, she said my client paid all cash for the house. So if she did not apply for a loan, there is no HUD-1 statement. So...what are we going to do now? She does have a closing statement which is not a HUD-1.

Does the IRS accept a non-HUD-1 closing statement?

[rjholmes]

You will probably need the closing statement with ALL signatures and dates, and be prepared to send even more proof of purchase and of residency. We sent in the closing statement, the client received a letter wanting a copy of the signed one. We had to get that from the attorney who prepared the deed. They also asked for copies of driver license and statements, etc showing that the taxpayer did indeed live in the home. We are still waiting to hear back from them.