ABC27 WHTM Tax refunds delayed by home buyer credit

Tax refunds delayed by home buyer credit

The Snuffer family bought their Newville home in 2008 because of the first-time home buyer tax credit.

The incentive from the federal government added $7,500 to their buying effort.

"When we weighed the options, it was worth it," said Rebecca Snuffer. "So we went ahead and did it, and I'm glad we did because we really did need that money."

But their joy is tempered a bit this year. The Snuffer's did their tax return and included the form to start paying the loan back in February, and filed electronically so that their refund check would not be delayed.

But the check has been delayed because of processing the home loan payback.

"The IRS said we're going to have it all done by the end of this month, and we heard that in March and April. Now it's May," said Snuffer.

There's a Facebook group page where dozens of homeowners also have delayed tax refunds because of the loan payback problem.

The IRS said it "recognizes the hardship caused by delayed refunds," and added that until processing issues are resolved, it has "assigned additional staff and resources to address the issues promptly."

The Snuffers just want the IRS to keep their $500 loan payment and send the rest of their tax refund now.

"I'm beyond frustrated," said Snuffer. "I'm at the point where all I can do is laugh, because if I don't, I'll cry."

The delays are because the IRS is processing the loan paybacks by hand in order to flush out any potential fraud.