What counts as proof of payment?

[Peace77]

The IRS is asking for proof that I paid my mortgage. They have asked for a copy of a cancelled check (front and back).

I have never paid for my mortgage by check. I pay online at the bank's website.

Will they accept my copy of the confirmation number and a copy of the bank statement page?

The bank statement page shows:
Date Amount external withdrawal XXX Bank - MORTGAGE

[mwcpa]

the bank statement showing the transfer from your bank account to the mortgage company would also be helpful....

by chance, is the mortgage in 2 or more names and yours is not noted on the form 1098? I had this issue a couple of years ago for a client, we showed the 1098 that stated both names, just showed one SS#, provided copies of the loan statement (again showing both names) and payments from my client (she had canceled checks) to the mortgage company.

If your name (and SS) is "first" on the 1098 then IRS must believe you did not pay the mortgage..... I recently I had to give a client bad news that they could not "take" the interest deduction that they did not pay because they were on the 1098.... Mom, Dad and child (over 21) owned the home.... Mom and Dad paid, but would get no benefit out of the deduction so they "gave" it to child.... you need to pay the mortgage to get a break....

[Peace77]

The issue is not the mortgage interest. The problem is that they are disallowing the First Time Homebuyer Tax Credit (2008) unless I prove that I bought the house AND a monthly mortgage statement.

My bank does not provide monthly statements --Only a coupon book.

The IRS letter says: NOTE: If your purchase was financed through a private mortgage and monthly statements are not available, provide a copy of a cancelled check (front and back) from a payment made in the last 3 months.

They are also requiring 2 types of proof that the property is our residence.

[Deleted]

Provide a copy of the on-line mortgage statement from your bank. Provide several past copies of your bank statement showing the automatic deduction towards the mortgage (I'd give them all 12 months). Just print it all out from your on line 'statements' page & provide to the IRS.
No, they are not going to accept a typed list of your payment confirmation #s -- they want bank statements, official stuff.

[mwcpa]

peace....
IRS is doing a lot of these reviews, there were a lot of fraudulent / suspect claims made for the first time home buyers credit....

I had a client asked to "prove" that their home was their principal residence in regards to a FTHBC.

Here is what IRS is looking for....(this is some of the basic rules to claim a 121 exclusion (the 250/500K gain exclusion related to the sale of your home)... this is from publication 523....(on top of what you are gathering to prove you pay the mortgage)

"Your place of employment.

The location of your family members' main home.

Your mailing address for bills and correspondence.

The address listed on your:

Federal and state tax returns,

Driver's license,

Car registration, and

Voter registration card.

The location of the banks you use.

The location of recreational clubs and religious organizations of which you are a member."

These are only some of the things to "prove" you live where you say you live.

[gavinsnana]

The bank should still have the info, plus you should be able to see your statement on line and print out that proof

[TheOtherMe]

Unfortunately there were a lot of fraudulent claims on the FTHBC. People seemed to see it as $8K of "free" money.

If you can get some of the things that mwcpa has suggested, you should be fine.

[Peace77]

The proof of address is no problem.

I just didn't know if the IRS would accept a print out of a bank statement in lieu of a cancelled check.

The next problem is that they also ask for the final closing contract (for example, the HUD-1 Settlement Statement) bearing all parties signatures, property address, seller's and buyer's names and purchase price.
My HUD-1 form doesn't have any signatures on it. The seller was not present at the closing.
Do I need to get a signed form from the title company?

[mwcpa]

peace....

from the IRS on your HUD-1 issue....this may have been required to be filed with the original claim (depending what year you made the claim), which may be why you are having issues today.....

"Settlement Statement Signatures: While the Form 5405 instructions indicate that a properly executed settlement statement should show the signatures of all parties, the IRS recognizes that the elements of the settlement document, often a Form HUD-1, may vary from jurisdiction to jurisdiction and may not reflect the signatures of the buyer and seller. The settlement statement that must be attached to the return is considered to be properly executed if it is complete and valid according to local law. In locations where signatures are not required the IRS encourages the buyer to sign the settlement statement prior to attaching it to the tax return even in cases where the settlement form does not include a signature line."

[TheOtherMe]

When I claimed the FTHBC, I was given at closing a copy of the signed document to send in. I did send a copy of the signed document. Knock on wood, but so far, I haven't had any issues with the IRS over my claim.

Periodically, I have received letters reminding me that I have to live here for 3 years, but I am not moving, so that isn't a problem.

[Peace77]

Ok, will send them the HUD-1 form and the bank statements. I don't remember if I sent the form in before or not. It would have been April 2009.
Thanks for your help MWCPA.