A few bad apples make a good tax credit hard to find...
As tax professionals around the country download their software, hang out their signs, post on Craigslist, etc, something taxpayers should know is that they cannot electronically file a return with a Form 5405. Well, what's that? Great question - it's the form that you'd use if you're applying for the homebuyer's credit. They'll just flat out reject the return.
So what's a taxpayer to do? Well, the IRS wants you to just file that return the old fashioned way - paper. Unfortunately, that'll take your refund a couple of months to process instead of the couple of weeks the e-filing population enjoys. Don't want to wait? I can't say that I'd blame you but you still have options - you could choose to do a refund anticipation loan. Or, if you're due a refund even without the credit, you could file for a refund for your regular amount electronically and then send off your paper return to amend it - at least you get some of your money before summer time.
As far as the refund anticipation loan - I firmly stand against the product. While I absolutely understand that there is a market for this product and with this product there are fees to be charged that must file very specific guidelines even down to the necessary disclosures. It's kind of like smoking - yes - it's disclosed that it'll kill you, but people do it anyway. As a CPA, someone who works to gain your trust on all financial matters, I cannot in good consciousness recommend this as an alternative for most of my clients. I suppose there are exceptions where the product would make sense, but I just can't do it.
Anyway - I'll get off my soap box now.
Many happy returns,
Josh
