When this FTHB Credit first hit the street, I said I wasn't going to touch it. (I still think that was the best thing to do.) I turned down a couple of them, but eventually had to cave in on one claiming the original credit which had to be repaid. They did qualify for the credit hands down, and they're still living in the house at this time.
The next year they went to another preparer due to procrastination and some other issues, so we lost contact. Yesterday the client called to say they got a letter from IRS saying they had claimed the credit in error and to please send in $7,500. (the original credit minus the repayment to date). I suggested they call IRS themselves and offer to fax in a copy of the closing statement before getting me involved, especially since I'm not doing their work anymore.
Client called today to say that after she spend over an hour on hold, the person at IRS told her they had sent out thousands of denial letters in error and correction leters are being prepared. So if what they told her is true, some of you may be getting a blizzard of panic calls shortly.
The next year they went to another preparer due to procrastination and some other issues, so we lost contact. Yesterday the client called to say they got a letter from IRS saying they had claimed the credit in error and to please send in $7,500. (the original credit minus the repayment to date). I suggested they call IRS themselves and offer to fax in a copy of the closing statement before getting me involved, especially since I'm not doing their work anymore.
Client called today to say that after she spend over an hour on hold, the person at IRS told her they had sent out thousands of denial letters in error and correction leters are being prepared. So if what they told her is true, some of you may be getting a blizzard of panic calls shortly.