The homebuyer credit has the IRS busy processing over 1.8 million claims for the credit. As this article from the Wall Street Journal explains, $12.6 billion has already been given out to taxpayers. Check out a snippet of their article on the story below.
Let's get this processing volume into perspective. IRS started processing claims for the first-time home-buyer credit when taxpayers started filing their 2008 tax returns in early 2009. That means IRS employees have processed about 150,000 claims a month.
It's a monumental task. Since discovering millions of dollars of fraudulent claims, the IRS has been reviewing a substantial portion of the claims instead of letting the computer process and pay.
That's where the delays start.