Discussion:Mortgage Credit Certificate error

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Discussion Forum Index --> Basic Tax Questions --> Mortgage Credit Certificate error


Discussion Forum Index --> Tax Questions --> Mortgage Credit Certificate error

PDXTaxman (talk|edits) said:

12 April 2014
Hey, folks, hope one of you can help at this most frenzied time of year. We have 4 or maybe 5 clients with Mortgage Credit Certificates, which are a pretty good benefit if you can get one. We learned the hard way a few years ago that you must file these EVERY YEAR with a copy of the Certificate attached (why the IRS can't keep a copy linked to a taxpayer's account I don't know, but apparently that feat is beyond them). Maybe PDF attachment would work, but we invariably print and mail those returns.

Last week, in this frenzied time, we goofed. We e-filed a return with an MCC. Realized the error today. I warned the client that it would bounce back and prepared an amended return differing only from the original in that it adds a physical copy of the MCC.

But: maybe that's an unnecessary thing. Is there any way we can correct the e-filed return without a full-on amended return? (Of course, we could just wait for the original to bounce back, then answer it with a letter and the physical MCC. But that entails many delays). Any input will be much appreciated. With corporate returns there is a way to do this, I know, but what about with 1040s?

EZTAX (talk|edits) said:

12 April 2014
We file a few of these every year and have never sent in the certificate. Where did you read/find out that this must be done? We have never had a problem. The info is entered on the form with the return.

Kbairtax (talk|edits) said:

12 April 2014
I sent one in this year for the first time. I did not attach anything to the return and the client received the requested refunds. I am sure they will contact me should a letter come. We filed in Feb, so probably too early yet for a letter.

Joanmcq (talk|edits) said:

12 April 2014
I've never sent in a copy of the certificate.

PDXTaxman (talk|edits) said:

12 April 2014
Thanks for the replies, folks. Not once, but twice -- once in about 2008, the second time in 2010 -- I made the same error as this week: e-filed a return that included this credit, rather than submitting it with a physical copy of the credit. (Both instances were for clients who'd had the credit the previous year). Both times the credit was denied, and we had to write a letter to the IRS including a copy of the MCC. The regs do specify submitting a copy every year.

I envy you folks not having had any problems. Maybe we'll advise the client to wait and see. This was his third year with the MCC.

Kbairtax (talk|edits) said:

12 April 2014
In my case this was the first year for the credit.

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