The $8,000 tax credit for new homebuyers is an effort by the Obama
administration to boost home sales in a slow economy, however, critics argue that the approved measure is an invitation for fraud that could encourage home buyers to backdate their contracts to April, in order to close in September.
The Internal Revenue Service said, “Special filing and documentation
requirements apply to anyone claiming the homebuyer credit.” The measure was pushed by Senate Majority Leader Harry Reid, who faces a tough re-election in Nevada where the worsening home crisis has received a lot of attention. The measure was signed by Obama on Friday July 3, a day before the Fourth of July celebrations.