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Nearly 33,000 Hoosiers Affected By IRS Clerical Error
Updated May 5, 2013 12:09 AM | Filed under: Network Indiana
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(FRANKLIN) - A clerical error at the IRS is causing several headaches for the first who applied for the first time homebuyers tax credit.

Carol Williams in Johnson County is in that group from 2008 and says everything was fine until she received a registered letter stating her credit was disallowed and she owed the government nearly $6,800 dollars for the credit plus penalty interest. The IRS also stated the amount was due within 30 days of when the notice was issued.

The letter claimed Williams applied for the credit prior to when it took effect in April 2008, but she says she didn't close on her house until June of that year. Williams says she also uses a tax preparer that would not have allowed her to claim the credit if she didn't qualify.

An IRS representative told Williams of the error when she called and stated 100,000 others had received the same notification by mistake. IRS Spokeswoman Jodie Reynolds could not prove an actual count of how many notifications were made in error, but believes the number of mistakes to be close to 33,000. Still Reynolds says the affected accounts have been fixed and the apology letters have been sent.

Williams says she won't feel comfortable with the outcome until she receives the written notification of the error. She says until then she will fear that the IRS will claim yet another error and that she will have to pay the money back which she doesn't have.

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