IRS incorrectly bills 80,000 taxpayers repayment of First Time Homebuyer Credits

The IRS incorrectly distributed approximately 80,000 notices to taxpayers stating that they needed to begin repayment of their first time homebuyer’s credit.  Many of these mistakenly sent out statements were sent to taxpayers who purchased their homes in 2009, who do not need to repay the credit at all.  Also the IRS attempted to identify taxpayers for collection who sold their residences prior to the required 3 year holding period, and were provided inaccurate information from a private third party data provider which caused another large group of taxpayers incorrectly receiving repayment statements.  If any of your clients received these letters be aware; the only taxpayers who are responsible for repayment of the first time homebuyer’s credit are those claiming the credit on home purchased in 2008 and those who sold or disposed of their home prior to the expiration of the 3 year holding period.