As the November 30^th deadline fastly approaches, lawmakers and the IRS are reviewing the very popular $8000 tax credit for first time home buyers. This tax credit which is first time home buyers allows them to file for the special tax credit on their 2008 or 2009 tax filings. While the program has been extremely popular with buyers there are concerns about the cost of the program as well as fraud by people who do not qualify.

The IRS has identified over 19,000 people who claimed the credit but had not yet purchased a home and 74,000 who had filed for the exemption that had prior home ownership. The IRS is currently reviewing all claims for the exemption and expects to take steps to those who fraudulently made claims.

Congress is currently reviewing the success of the program as well. While viewed as very popular several senators have raised concern about the cost of the program. 1.5 million Families have filed for the tax credit for a cost of $10 billion dollars. There are talks to have the program extended thru June 30, 2010 and make it available to all home buyers.  Whatever is decided there will be measures to watch the cost of the program as well as any fraud that may occur.

Based on the current market conditions congress will address some sort of extension for this program. With midterm elections a year away you can expect many members of congress supporting some kind of bill to keep the housing market going in the right direction.