Earning money usually means paying taxes, and paying taxes always means filling out forms. These forms can range from tedious to overwhelming, but it’s important to fill them out accurately to ensure the highest possible refund. One, the CP-21B form, is for just that purpose: it handles tax overpayment. The overpayment also includes amended taxes that include new deductions or credits, such as the First-Time Homebuyer Tax Credit.

If you receive a CP-21B form after you apply for the First-Time Homebuyer Tax Credit, the IRS indicates that a refund is due. According to the official IRS website, no further action is required; receipt of this form means that you will receive a refund within the next 30 days.

Be careful, though: Before you allocate the refund money, you need to call the IRS and verify the amount. After all, the IRS could decide that you are not a first time buyer, AFTER you receive the CP-21B.

Using the number on the top of the CP-21B [http://www.rapidtax.com/blog/index.php/the-cp-21b-and-other-forms-you-need-for-the-first-time-home-buyers-tax-credit/#more-119/] The form should only take a few minutes and can save you a huge headache later on. You wouldn’t want to plan on buying a new car, only to find out that the IRS modified your taxes differently than originally stated and decided you weren’t eligible for the First-Time Homebuyer Tax Credit after all.

You should also call the IRS if you think you received a CP-21B form in error or have already made a correction. For faster service, avoid calling the IRS on Mondays, when volumes are highest. If you have ongoing problems with Form CP-21B, the First Time Homebuyer Tax Credit, or any other tax problem, you can contact the Office of the Taxpayer Advocate.