Help!! IRS denied tax credit...appeal?

[Mardi Gras Audrey]

As the thread mentions, I need some help from you smart folks.

My DH purchased a home in 2011 and qualified for the $8k first time home buyer's credit (This was the one you didn't have to repay-he was active duty military and was deployed when it was available to the general public so he qualified for the extension).

At any rate, he filed for it with his 2011 taxes (Back in April 2012). The IRS initially told him they "didn't have the paperwork to approve it" (HUD-1??) so they wouldn't approve it back in June 2012.  He faxed all of the documents to them multiple times (HUD-1, Paper return, etc, etc) and would receive random form letters from the IRS saying they "were processing it" and "they were denying it" and a bunch of other stuff.  The other part of his refund (he is an over-withholder) was approved/received last summer but this credit keeps getting held up.

Finally, at the beginning of Nov, he got a call from an agent who said she was the one working on his case.  She asked him to refax the paperwork to her (he had faxed this paperwork 3 times (~40 pages each time) and they "lost it" or "lost part of it", etc) and she would approve it that week.  He did so but them he got a letter few weeks later saying that the credit was denied because he didn't supply the requested paperwork (showing a home purchase).

He went to talk to a rep at a field office last week and they couldn't tell him anything (The couldn't even see what he had sent them...could only see that there was an electronic file in their system that had his docs but couldn't open the file).  The rep was worthless, just recited the checklist with all the papers he "needed to submit" (He submitted them 3 times over the past year) and made excuses that "sometimes one agent works it, then another agent gets the case but doesn't get all the docs, etc.

Where does he go from here?  We weren't married in 2011 so it isn't my return so I can't do anything but if I could point him in the right direction, that would be great.  He is sick of speaking to the 800 number that can't say who worked on it or why they denied it (The woman he spoke to in Nov only gave him her fax #, not a phone # to call her directly).  

He is ready to call his congressman and let the IRS explain it to the Congressional staff.  Is that where he needs to go?

Thanks in advance

 

[mwcpa]

without seeing all of the documents and the like, and you beleive he met the requirements for the FTHB my suggestion is to draft a letter with the notice of denial (most recent) and all the requested documents, inlcuding the signed HUD-1 (in full), and mail it (certified mail) to the IRS office handling the case.  there should have been an address noted (and process) to appeal the decision, that is the address to use.... explain your position careful, show "proof" if you have it of the fax you sent.

If you have just had and and want to throw it in, before you call Congress, seek a professional who may be able to make sence of the papers and see exactly what they asked for and what may not have been sent.... the FTHB was poorly adminsitered at the IRS at first and after some big goofs (5 year olds getting the credit when they cannot legally own property) they got really tough.....

I cannot count the "fax" issues I have seen over the years... recently I had a client's staff fax me 7 or 8 pages separately.... we never got them.... they kept saying we have the "confirmation" page (some fax machines print out a document)..... screaming shouting and carry on about how "bad" we were, etc., etc.  My client comes in with this confirmation page.... they all say, pages sent 0 of 1..... he was embarassed, he appologized and the from now on he calls when his offices faxes something to confirm it.

In addition, if he is "blindly" faxing in the HUD-1 (without a cover letter or copy of the notice, etc) to the IRS office no one will know what it is for.... this is not just an IRS issue, many larger organizations (and smaller ones like mine) get faxes without cover pages.... or details..... and if it is a "general" fax number it could easily be mixed up with somelese docuemnts (assuming it was blind and not identified)

Good luck.

[Deleted]

I recommend you complete Form 911 and fax it to your local Taxpayer Advocate office.  Print a copy of the explanation you posted above and attach it.  You will find contact information for your local Taxpayer Advocate in IRS Publication 1546.  Local offices listed by state start at the bottom of page 10.

[grits]

When dealing with the IRS, don't fax your paperwork.  Send it certified mail return receipt requested.  It will prove that they did indeed receive the paperwork, and give you a small lever on your side.  Also, contact your local congressman's office.  Explain to them the situation.  Husband was deployed, active duty soldier, and he needs to be able to provide the receipts showing he faxed the paperwork, to the number it was faxed, and what all he faxed.  It may not fix it but the congressman's office can apply a little heat to the IRS.

[Mardi Gras Audrey]

Thank you all for the good advice.  I will let him know. 

As far as the faxing goes, I agree it isn't the best way to do things... unfortunately, it sounds like that is the way the people he spoke to (both the 800 number folks and agents) told him to do things.  I found some of the faxes he sent (confirmation pages, etc).  It looks like he always sent a cover page and his SSN/name on everything along with a letter explaining who he spoke to/what they advised. 

He is just sick of fighting with them and speaking to people who know nothing about his return yet feel compelled to give him the same line ("Here's the checklist, blah, blah, blah...").  I will have him consult a pro, it looks like there is an advocate office not far from where we live.

Thank you again!