Earning money usually means paying taxes, and paying taxes always means filling out forms.
These forms can range from tedious to mind-numbing, but filling them out accurately is important to ensure the most possible refund money.
One, the CP-21B form, is for exclusively that purpose: it handles overpayment of taxes.
Overpayment also includes amended taxes that include new deductions or credits -- like the First Time Homebuyers' Tax Credit.
If you receive a CP-21B form after filing for the First Time Homebuyers' Tax Credit, it is the IRS indicating that you are due a refund.
According to the official IRS website, no further action is required; receipt of this form means you will receive a refund within the next 30 days.
Be careful, however: before you allocate the refund money, you should call the IRS and verify the amount.
The IRS might decide you aren't a first time buyer after all -- AFTER you receive the CP-21B.
Using the number at the top of the CP-21B [http://www.
rapidtax.
com/blog/index.
php/the-cp-21b-and-other-forms-you-need-for-the-first-time-home-buyers-tax-credit/#more-119/] form should only take minutes, and can save you a big headache later on.
You wouldn't want to plan on purchasing a new car, only to find that the IRS amended your taxes differently than originally indicated, and decided that you weren't eligible for the First Time Homebuyers' Tax Credit after all.
You should also call the IRS if you feel like you received a CP-21B form in error or have already made a correction.
For fastest service, avoid calling the IRS on Mondays, when volumes are highest.
If you have continued issues with the CP-21B form, the First Time Homebuyers' Tax Credit or any other tax issues you may want to contact the Office of the Taxpayer advocate.
These forms can range from tedious to mind-numbing, but filling them out accurately is important to ensure the most possible refund money.
One, the CP-21B form, is for exclusively that purpose: it handles overpayment of taxes.
Overpayment also includes amended taxes that include new deductions or credits -- like the First Time Homebuyers' Tax Credit.
If you receive a CP-21B form after filing for the First Time Homebuyers' Tax Credit, it is the IRS indicating that you are due a refund.
According to the official IRS website, no further action is required; receipt of this form means you will receive a refund within the next 30 days.
Be careful, however: before you allocate the refund money, you should call the IRS and verify the amount.
The IRS might decide you aren't a first time buyer after all -- AFTER you receive the CP-21B.
Using the number at the top of the CP-21B [http://www.
rapidtax.
com/blog/index.
php/the-cp-21b-and-other-forms-you-need-for-the-first-time-home-buyers-tax-credit/#more-119/] form should only take minutes, and can save you a big headache later on.
You wouldn't want to plan on purchasing a new car, only to find that the IRS amended your taxes differently than originally indicated, and decided that you weren't eligible for the First Time Homebuyers' Tax Credit after all.
You should also call the IRS if you feel like you received a CP-21B form in error or have already made a correction.
For fastest service, avoid calling the IRS on Mondays, when volumes are highest.
If you have continued issues with the CP-21B form, the First Time Homebuyers' Tax Credit or any other tax issues you may want to contact the Office of the Taxpayer advocate.
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