Tuesday, February 16, 2010

Signature Requirements on First-Time Home Buyer Documents

The IRS is advising buyers who qualify for the First-Time Home Buyer Credit to sign all settlement statements. The instructions to Form 5405 indicate that a properly executed settlement statement should show signatures of all parties. However, not all settlement documents contain a signature line. The IRS has conceded that it will accept a settlement statement that is complete and valid according to local law. Still, the IRS is advising taxpayers to sign the documents.

Anytime the IRS (or any state departments) issue these advisories to avoid processing delays, expect processing delays regardless to the precautionary steps you take.

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