Under the original 1st time home buyer tax credit program you could file your claim electronically. This led to numerous cases of fraud. An example is tax preparer James Otto Price who is alleged to have filed false claims on behalf of fifteen clients for the tax credit.
To apply for the credit under the new legislation passed last November you must now send to the IRS paper copies of form 5405 along with proof of residence, signed mortgage document and other forms of justification. This means your refund will be delayed a few months while the information is processed.
