[enigma]

I filed for taxes and included an amendment to receive my home buyer tax credit. That was back on 4/14/2010. It's 8/23/2010 and after communicating and replying to them with more documents that they requested, I called today and she said that the status of my refund has changed from "Processing" to "Preparing to close". What does that mean?

She told me to give them yet another 30 days before I can call and ask them to inquire more into this case.

Arrrrgghhh. For the love of god why is this taking this long? :mad::mad::mad::mad:

[AtlantaTaxExpert]

Enigma:

Because the possibility of FRAUD in claiming the $8,000 credit is so large that the IRS has NO CHOICE but to take the time to validate that you in fact:

- made the purchase.
- closed on the house.
- were eligible for the credit.

Anyone with a simple documents program can generate an HUD Form 1 to attach to the amendment. There have been documented cases of convicts in prision claiming the $8,000 First Time Home Buyer's Credit, not to mention foreign nationals who are in the country on a temporary basis.

For these reasons, the IRS has to be extremely careful about issuing this credit, because once the check is cashed and the money is spent, it would be virtually impossible for the IRS to recover that money should they find out that the recipient did not qualify after the fact.

Add to that the fact that the number of amendments claiming this credit is in the HUNDREDS of thousands, and you have a built-in delay of 4 - 6 months for ANY amendment submitted in the last year. I have clients who submitted amendments (that had NOTHING to do with the $8,000 First Time Home Buyer's Credit) in February 2010 which STILL have not been processed.

At least your amendment is about to close! Count your blessings!