First time homeowner repayment

[FRAZZLED]

I've had this client since 2011 and every year she has a 1099c from bank. I asked what it was for and she said it was on her house loan. I've put it in as 1099c. Always efiled no problem. this year no 1099c she said bank wasn't issueing her one because debt was done. Return was rejected. IRS said taxpayer owes for first time homeowner credit. Found out client took credit in 08. client called IRS and they said no payment was received in 10 & 11 but payment was received in 12 & 13. basically I've been reporting this payment wrong all along. Do I amend all returns and what about this year when bank won't issue any kind of form to show amount to repay? Please help

[rtsietsema]

Use IRS numbers

The bank really has nothing to do with credit repayment, and you should be able to make the balance payment due, or the expected portion of it on this years return with out amending prior returns.

Use this link to the IRS website to determine amounts paid and balance due, and go from there.

http://www.irs.gov/Individuals/First-Time-Homebuyer-Credit-Account-Look-up

[Roland Slugg]

The FTHB credit taken in 2008 was supposed to be paid back in 15 annual installments beginning in 2010. If someone took the $7,500 maximum credit, each repayment installment would be $500 ... less if the original credit was less than the full $7,500.

I'm not aware of any relationship between a 1099-C form issued by a bank and the obligation to repay. The only way out of repaying of which I am aware is the sale of the house at a loss.

[kathyc2]

I don't remember all the specifics, but I know at least a couple of years ago, the payback was forgiven in foreclosure.

[DaveO]

In my neck of the woods there was a program about 15 years ago to encourage people to buy homes in distressed areas of town. A separate loan backed by some grant money would provide the down payment. If the new owner lived in the home and maintained the property the bank would forgive the loan for the down payment over a period of years issuing a 1099c.

[FRAZZLED]

Thank You

I want to thank everyone for their advice. It is great to have this help.