Senate aims to extend credit for first-time homebuyers

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Bloomberg is reporting that Senate leaders are working to extend the $8,000 tax credit for first-time homebuyers and then gradually reduce it next year.

“We should be able to extend that later this week,” said Sen. Bill Nelson, D-Fla., who was on Air Force One with President Obama on his way to a speech in Jacksonville.  The credit expires Nov. 30.

Update at 5:08 p.m. ET: Because of fraud and administrative snafus, the IRS handed out $620 million in credits last year to filers who weren't eligible. As a result, the IRS will review by hand the tax returns of all filers claiming the first-time-buyer's credit for 2009 or amending their 2008 returns, MarketWatch reports. That means a long wait for your $8,000