The Internal Revenue Service has recommended new procedures to electronic filers when e-filing for a repayment of the First-Time Homebuyer Credit.
In an e-mail alert on Friday to software developers, return transmitters, and authorized IRS e-file providers, the IRS said that when e-filing a repayment of the First-Time Homebuyer credit, it recommends the following actions to expedite processing:
When married filing jointly for tax year 2010 and only one spouse received the homebuyer credit for tax year 2008, the IRS recommends filing one Form 5405 showing the taxpayer Social Security number who received the credit and is making a repayment.
When filing married filing jointly for tax year 2010 and the homebuyer credit was received from a married filing joint return for tax year 2008, the IRS recommends filing two Forms 5405—one for each taxpayer Social Security number—and making a repayment for each form based on one-half of the total credit received by the spouses. For repayment purposes, the credit received for tax year 2008 is considered split equally between the two spouses when taxpayers received the credit on a joint return, so filing two distinct forms when repaying the credit should help expedite processing.
