My chronicle of how the IRS and Tax Court affect taxpayers' daily lives.

See below for important disclosures.

Friday, September 18, 2009

Do Taxes Make You Sick?

It's been a rough week for me. I went home early on Wednesday and Thursday due to a feeling of exhaustion. The September 15th filing deadline sure took a lot out of me! I am, however, enjoying doing some tax blogging.

Not too much interesting stuff today, but there are some new buzz coming out about expanding, extending, or modifying the First Time Homebuyer Credit. The Congress is worried about individuals who have purchase contracts currently but may not close due to the long due dilligence process currently required by banks.

Many homebuyers are also involved in purchasing short sales, which require bank authorization prior to the acceptance of the purchase offer. This often takes two to three months, and is entirely out of the hands of the purchasor and seller. The Congress does not want to punish well-intentioned buyers for the lack of staffing and coordination of the banks.

Regardless of the potential for an extension or modification, the current law is clear that the deadline for purchasing a home (closing papers signed and purchase recorded) is November 30, 2009. I'll do my best to keep you informed if something changes.
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Aaron Blau, E.A. is the Vice President of the Central Arizona Chapter of Enrolled Agents and a member of the Government Relations Committee of the National Association of Enrolled Agents. The opinions and ideas expressed here are in no way representative of the official position of the National Association of Enrolled Agents, Arizona Society of Enrolled Agents or the Central Arizona Chapter of Enrolled Agents.

For official comments, please e-mail NAEA Director of Communications at mlockwood@naea.org or Arizona Society president stefaniecampbell@aztaxpros.org.

IRS CIRCULAR 230 DISCLOSURE:
"To ensure compliance with the requirements imposed by the IRS, we inform you that, to the extent this communication (or any attachment) addresses any tax matter, it was not written to be (and may not be) relied upon to (i) avoid tax-related penalties imposed under the Internal Revenue Code, or (ii) promote, market or recommend to another party any transaction or matter addressed herein (or in any such attachment). In addition, nothing herein is intended to convey an expression of an opinion as to the likelihood a tax position would ultimately prevail if challenged by the IRS. This communication is intended solely for the person to whom it is addressed; no one else should rely on the tax advice provided herein. The person to whom this advice is addressed is under no obligation to keep the advice or matters related to the advice confidential."