How can I get the IRS to send my CA New Home Buyers Tax Credit?

I meet all of the requirements for California's First Home Buyers Tax Credit. My CPA prepared my return and we filed all necessary paperwork. I've been working with my CPA on this since April15th 2011.

It's now July 29, I have still not received my refund. The IRS has sent me two letters asking for the same information each time. My CPA has told me this has been happening with all of her clients in regards to the First Time Home Buyers Tax Credit. Same for my CPA's colleagues. The IRS will continue to send notices until I give up.

How can I get the IRS to quit stalling and send me my refund??? Has anyone in CA received their credit?

7 Answers

  • Russ B
    Lv 6
    8 years ago
    Best Answer

    Okay Two problems...first the IRS has nothing to do with a CA tax credit. That is up to CA.

    The second is a bigger problem that I would like to explain to you abd anyone else that reads this, a CPA isn't a tax expert! A CPA is a Certified Public Accountant...they do auditing (the same thing the IRS does but in a different way). Now to be fair I know several CPA's that are very good at taxation...most aren't. In fact most CPA's hire an EA (Enrolled Agent) to prepare the tax returns for them (or someone like a EA).

    If your CPA hasn't explained that the CA New Home Buyers Tax Credit is isn't a Federal (meaning IRS issue) you should fire him!

    Now if you actually filed for the federal program. of First Time Home Buyers Credit...then you should see an EA (Enrolled Agent) to see if you really qualify...and then to solve the problem.

    Source(s): 25+ years of experience and a EA.
  • Bobbie
    Lv 7
    8 years ago

    Ca New Home Buyers Tax Credit is and was A NONREFUNDABLE tax credit.

    The tax credits are nonrefundable, and unused credits cannot be carried over.

    These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable, and unused credits cannot be carried over.

    Now which one is it Ca. or the IRS?

    With the IRS you will just have to continue with your good patience until the IRS finishes with the processing of your 1040 income tax return to their satisfaction and THEN at that point in time they will either send you a REFUND amount or send you another letter or notice for some more detailed information about this matter.

    As the IRS will be the only one that will know when this might take place in your life time.

    Hope that you find the above enclosed information useful. 07/30/2011

  • 8 years ago

    The IRS only sends federal tax credits. It does not send California tax credits.

    California tax credits can only be sent by FTB (franchise tax board). They cannot be sent by the IRS.

    There are clearly many individuals who have received first time homebuyers credits from the IRS, because many of them have posted questions here concerning whether they need to repay the first time homebuyer credits that they received from the IRS.

  • 8 years ago

    You can't. The IRS deals with federal taxes, CA homebuyer credit is a state program. The IRS has nothing to do with it.

    If you mean the federal first time buyer's credit. That's over. They get delayed because of the massive amount of fraud involved in the credit claims. Relax, if you qualify, you'll get it.

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  • Judy
    Lv 7
    8 years ago

    Uh, the IRS has absolutely nothing to do with state refunds. You need to contact CA. And the IRS has not sent you any letters regarding a state credit. The IRS is federal.

  • Anonymous
    8 years ago

    You mean the California Franchise Tax Board. The IRS has *nothing* to do with this.

    You have to persevere and send the same information again. 3 months is nothing with a credit. This could take 6 months or more.

  • tro
    Lv 7
    8 years ago

    if you applied for the Calif. homebuyer's credit it will not come from IRS, that is an entirely different and separate credit

    very likely the Calif. credit has expired since it had a dollar limitation which was reached very shortly after the credit was approved by the legislature

    there have been enormous fraud with the FTHB credit and if yours is delayed it is because they are doing a more thoro job of checking your eligiblity

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