Low Income Housing Tax Credit & IRS Audit Risks of Felons

December 5, 2011 by admin · 2 Comments
Filed under: Loans for Felons

Did you use a low income housing tax credit to purchase your home in the last couple of years? If so, you may be at risk for receiving an IRS audit letter in the mail. (read on…)

Many convicted felons utilized the low income housing tax credit when it was made available under the Obama Administration. The credit provided benefits for home purchasing by providing a credit ranging from $7,000 to $8,000. Unfortunately, the IRS seems confused now as they are sending out letters to people who qualified, indicating they didn’t qualify. Or, they are sending out letters to new homeowners advising they should have taken the credit when, in fact, they did not qualify. These letters are not limited to people with felonies but, for those with felony convictions, it can create hardship as we are already struck with financial distress and do not need another issue coming up in our lives. If you receive one of these letters, contact a financial planner for guidance in how to handle the letter and response to the IRS. Do not give in to the IRS as, in many cases, they are wrong in their assessment as it is a misunderstanding. If you qualified for the credit, and took it, then you may not have anything to worry about.