Scammers are keeping home buyers from their tax credits

The IRS reported that because of scammers looking to cash in on falsified home buyer tax credit claims, they've now had to change the original E-form required to file for the credit. Buyers who want to cash in on the tax credit of up to $8,000 for 1st time buyers, or for move up buyers with a credit of up to $6,500 must now file via mail.

This change is delaying the process for buyers to receive their tax credits by slowing down the turn around time. Before, buyers could've seen their refunds come back in as little as a month, it's now taking some states as long as 4 months. In addition, buyers are now required to submit additional documentation for proof such as proof of residency, a signed mortgage statement and a valid driver's license or photo i.d.

The IRS points out that taxpayers can still use the electronic forms available on its Web site or consumer sites such as TurboTax; they just have to print them out, attach the proof and mail everything in.

The IRS has posted the new form 5405. Click here to download.

Still, waiting 4 months for free money isn't too bad. When the program was first rolled out buyers had to wait a full year before they could file their claims.

Another sad story however for those scammers looking to take advantage of others. In October,

James Otto Price III was convicted of falsely claiming tax credits for 15 people. Since then it's believed their have been other arrests, but hopefully this new system will put an end to it.