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My husband and I recieved the 7500 interest free loan for tax year 2008 and now have learned from the IRS that we should not have been given it.
BACKGROUND: my husband purchased his first home in 11/2004 and sold in 12/2007. Together we purchased a home in 07/2008.
In 2009 when we went in to do our taxes, we did not think we qualified for the first time homebuyer loan given that this was my husbands SECOND home, my first. Our tax preparer assured us that we DID qualify because it was MY first home, so we did not argue, thinking he knew what he was talking about. So we got the 7500 interest free loan, being fully prepared to pay it back as required: 500/year for 15 years. This week we recieved a letter from the IRS regarding the loan, and when I spoke to a representative I learned that we should NOT have recieved the loan and will have to work out a payment plan. (I am assuming this plan will NOT be over 15 years as we were expecting…) I have been trying to get in touch w/ the tax preparer to see what he has to say, though inevitably I know he cannot do anything. But I now know that we have an interest penalty that we will have to pay to the IRS.
I looked at all our paperwork from when we did our taxes and we never paid for any kind of insurance or recieved any guarantee that their work would be correct. But we also never signed any forms or disclaimers waiving their liability. What should I expect legally from this tax preparer? Can I expect him to at least cover the interest???

3 Thoughts on Any legal recourse for mistakenly being given 1st time homebuyer credit?
  1. Reply
    Love giving the CA Howdy
    October 26, 2011 at 4:03 am

    I think, you should contact a lawyer for this one. In my opinion, someone who represents themselves doing a service and then messes up that service they are liable. Example: You hire a painter and they painted your house the wrong color, they are liable for re-painting and all costs. Look again and see if she is a licensed professional, a lot of states, in order to file taxes for someone you have to have a license. I would file a complaint against her and whomever issues the licenses (if she has one) and if she works for a company I would do a complaint with BBB AND if all else fails, I would take her to small claims court. But, consult a lawyer immediately.

  2. Reply
    LordGodGoose
    October 26, 2011 at 4:15 am

    At the very least, you should write a very concise and accurate letter to the Tax Preparation company ASKING them if they have anything to say….and copy it to your local Better Business Bureau and to all the local newspapers…

  3. Reply
    Mr Placid
    October 26, 2011 at 4:24 am

    Yes, he’ll be responsible for the interest and penalties. He doesn’t need to grant a “guarantee.” When you hire a professional, there is already a guarantee that he will provide professionally competent work and provide competent advice.

    But the interest and penalties will be miniscule. It will hardly be worth fighting over.

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