I found this great article in my reading and thought that the subject bears repeating. The Wall Street Journal reports that there are over 100,000 cases that have been filed that are considered “suspect” by the IRS. We all know what happens to suspicious minds.

If you are buying a home this year and are entitled to the refund, thank you for participating in keeping the money train moving. Just be aware that you have to live in the house for three years or parts of the incentive will have to be repaid.

You must also close your escrow or settlement no later than November 30th of this year. Lenders are starting to get very busy right now, so be sure that you stay close to your Realtor and loan officer to be sure all is being done to move you forward.

The IRS has a nice over view of the program here.

Here is the form that you need to file after closing. I would suggest that you read the entire form and be aware that you can file for the tax rebate immediately after closing on your 1st home. (click here for on line tax rebate form)

A word to the wise: When you file your tax returns for 2009, be advised that you might be audited for what is known as “Quality Control” in the mortgage business.