Prior to 2009, brokerage firms, brokers, mutual fund companies and barter exchanges were required to have year end tax statements out to their clients by January 31. The problem has been that many of them have had to be corrected and a second (or third) version issued to taxpayers, who had sometimes completed their returns from the first version and then had to amend their tax returns. The law changed last year and these reports are now required to be issued by February 15th (which is a Federal holiday this year, so the due date is February 16th).
I have had to advise both myself and clients to be patient.

CNN.com published an article yesterday that the IRS has left homebuyers qualifying for the homebuyer tax credit after the November 6, 2009 changes 'in limbo because no form yet exists for them to file'. The problem with that comment is that it's not presently true.
It's always tempting (and usually easy) to pick on media reports as biased or inaccurate. It's also tempting (and usually easy) to poke fun at the IRS for being slow, bureaucratic and even bumbling. I avoid the temptation unless it serves a purpose for my clients and taxpayers.

In this case, the CNN.com article is out-of-date but, assuming it was prepared by the writer over a week ago (I'll give him benefit of doubt), was accurate until January 8, 2010.

A 'revised' Form 5405 and Instructions are available on the IRS website as of that date, for sales made after November 6, 2009. I have no doubt my tax software will include it in its next update.
The revised form requires certain proof documents be sent with your return so that IRS can verify the taxpayer actually qualifies (blame the numerous frauds reported last fall for this change). The proof required is a copy of the settlement statement (usually Form HUD-1) or other specified documents for the 'first-time' credit and, if the 'long-time resident' homebuyer credit, five years of mortgage information OR property tax records OR proof of insurance on the property. A nuisance to be sure, and I can only repeat...blame the numerous frauds.
AND the form and tax return to which it is attached (the Form 1040 for 2009) must be filed on paper, since these extra documents cannot be processed by electronic filing. So while if currently takes IRS 16-20 weeks to process the credit and send the money (on the old form), the timeframe on processing the new ones is unclear. It will no doubt be at least that long on the revised version.

I want to give IRS a pat on the back. They said they expected a revision to form and instructions by early January. They met that timetable and the requirements aren't unexpected. I do hope they're making the personnel available to handle the work (that's my expectation, not necessarily theirs).
As for staff writer Christie and cnn.com, I wonder if he's waiting for his own homebuyer tax credit payment.

ADDITIONAL NOTE: THE CNN.COM ARTICLE HAS NOW BEEN UPDATED TO REFLECT THE AVAILABILITY OF THE FORM. THE DELAY IN PROCESSING TIME AND REQUIREMENT TO FILE PAPER RETURNS IS ACCURATE.

Congress has provided a number of credits over the past few years with the stated goal of having more energy-efficient appliances of components. This will be an overview of those currently available.

Individual taxpayers are allowed a personal income tax credit in 2009 and 2010 (called the "nonbusiness property credit") equal to 30% of the sum of (1) amount paid or incurred by the taxpapyer during the year for qualified energy efficiency improvements, and (2) amount of residential energy property expenditures paid or incurred by the taxpayer during the tax year. No credit is allowed to the extent that an excluded energy conservation subsidy (one provided by a public utility to a customer to buy or install an energy conservation measure)was provided for the expenditure.

The dwelling unit must be owned by the taxpayer and used as his principal residence, and must be met at the time of installation (i.e., credit available only for existing homes).

The aggregate amount of nonbusiness energy credits allowed for tax years beginning in 2009 and 2010 cannot exceed $ 1500. This is a non-refundable credit, meaning it can only be used to reduce your tax liability to zero.

Th types of purchases that can qualify include insulation material or systems, exterior windows, skylights, ro doors, metal or asphalt roofs. The key thing to know is that each different type of product type and category has a specified minimum criteria. The seller's representation that an item is 'energy efficient' is not satisfactory; in order to be qualifying, specific values must be met, and the seller/manufacturer should be able to provide the documentation you need. (If they cannot, I recommend you shop elsewhere). A complete list of the tax credits and criteria is available at www.energystar.gov/taxcredits.

Similar but different are the Residential Energy Efficent Property Credits, currently available thru 2016, which provide credits for qualifying (key word again) solar electric property, solar water heating property, small wind energy property, greothermal heat pump property, fuel cell property, Property must be originally placed in service by the taxpayer (must be new, cannot be used).

The rules are complex and very detailed (at the energystar website noted above). If you are investing your money in these types of improvements/replacements for your home, take the time to insure that they qualify for the tax credit.

For a couple weeks now, I've been telling clients a harsh truth: over the next few years, in almost every case, their taxes will go up. Not only those who make over $ 200,000 or $ 250,000 a year, which was President Obama's campaign pledge, but those who make something like $ 75,000 a year (if single) or $ 150,000 a year (married filing joint). Ok, so this may not be news, as many people predicted the original higher levels could not generate enough money to pay for "change". And that was BEFORE the government stimulus programs of early this year and cash-for-clunkers, estimated health-care reform costs and expanded homebuyer and other tax credits.

Now the effects of all this deficit spending and ever-increasing government debt has at least some bureaucrats and politicians talking of...new taxes to pay for it all. Some of the suggestions are clearly political and probably won't go anywhere, but something will have to be done: as other countries come out of recession, they will raise their interest rates and pressure will increase for the U.S. to do the same (it's already begun). Higher interest rates mean higher debt service costs (in that way at least, the government is no different than the individual). Therefore, part of the pressure is beyond the control of the U.S. Government.

If Congress cannot raise enough revenue to pay the bills by increasing taxes on 'the rich' (the $ 200,000 to $ 250,000 a year crowd, as they define it), they have to lower the threshhold.

The pressure from Congress and the White House on the IRS to 'close the gap' is tremendous. In addition to tax changes, the government has increased most of its fees and many of its penalties, with more to increase for the 2009 tax year (what we'll file in 2010). For example, the minimum late-filing fee for a personal income tax return is now $ 125 (and IRS DOES assess it, even on very small tax levels). For business returns filed late in 2010, penalties will be based on time late and, where K-1s are involved, the number of K-1s; the penalty amounts are doubled. And interest is charged.

Ever-increasing fees...that sounds like what the airlines do, to the frustration of many fliers.

The significant changes will more likely come in 2011 than 2010 (after the elections next year), but it's coming.

So what do we do, to plan for this and minimize the impact? Until the changes are known, it's hard to tax-plan more than a year or two out. At this time, we're planning end year 2009 and 2010, because those are known (we hope). Anything else is conjecture.

And no, none of my clients have been happy to hear this.

Earlier this month, Congress extended and expanded the Home Buyer Tax Credit, doing two things. First, the First-Time Home Buyers who were eligible for up to an $ 8,000 credit can still qualify for one beyond the original expiration date of November 30; it is now extended thru April 30, 2010 (contract must be signed by that date, closing must be completed by June 30, 2010). There are still income-level phase-outs, but these have been raised. Second, current homeowners can get a tax credit of up to $ 6,500 if they go out and purchase another home (must be primary reisdence) between November 6, 2009 and April 30, 2010.

There are other limits, primarily that the home cannot cost more than $ 800,000. A number of loopholes that had been used by creative (or unscrupulous) taxpayers have been closed (sorry, your four year old cannot buy a home and qualify for the credit any longer).

If all these details and conditions sound confusing, it's because they are. This is typical of most tax credits, which are targeted. Compared to the Home Buyer Tax Credit, the Cash for Clunkers program earlier this yearwas pretty straight-forward.

So what to do? IF you qualify in 2009, you can take the credit on an amended 2008 return or a 2009 return, which allows you two opportunities to fit into the conditions and limitations; if you qualify in 2010, you can take it on the 2009 return or the 2010 return.

A side-note: as we've mentioned previously, the IRS is auditing more of these Home Buyer Tax Credit claims, by requiring copies of back-up documentation. We have begun including those copies with the tax return requesting the credit, to expedite the process at IRS and for our clients, which currently takes 16-20 weeks to get a taxpayer the money from the credit. The new law requires copy of the closing statement be attached, which indicates they are working to streamline the process.