First time home buyer with back taxes owed?
My family and I are about to buy our first home. I owe about $3000 in back income taxes currently. We will be closing the deal on the house in Sept 2009. My question is about the first time home buyer tax credit. First of all will this credit go against what I owe and wipe that amount out? Also, will any additional credit be sent as a refund check? I am thinking about just amending my 2008 taxes with the first time home buyer informations if this is possible. That way I can get the IRS off my back.
Thanks much for any help/.