All Real Estate Agents should know the Home Buyers Tax Credit expired on April 30, 2010. Home Buyers who wanted to benefit from that tax credit must have a signed and accepted purchase agreement on or before by that date.
Real Estate Agents must NOT be tempted to backdate a purchase agreement, making it appear that it was signed and accepted on April 30th. Real Estate Professionals must resist this temptation or they will face the following consequences:
According to IRS Title 26, Section 7206, any person who aids, assists or advises the preparation of a fraudulent document or is false as to any material matter in connection with any matter under the Internal Revenue laws is guilty of a felony and subject to the following penalties:
(1) Shall be imprisoned up to 3 years;
(2) Or fined up to $250,000 for individuals and $500,000 for corporations;
(3) Or both, together with cost of prosecution.
In April, 2010, one Real Estate Agent pleaded guilty in federal court to charges related to the Home Buyers' Tax Credit. This Real Estate Agent faces up to 30+ years in prison and a $2.5 million fine.
Do NOT backdate any purchase agreement, because the penalty can destroy your life, your career and get you a long prison sentence, and cost you up to a quarter of a million dollars for EACH violation.
