‘‘(3) TIMING.—An election described in para-
graph (1) shall be made by the taxpayer not later 
than the date on which the purchase of the principal 
residence with respect to which the credit under sub-
section (a) is allowed is made. 
‘‘(4) REVOCATION
OF
REGISTRATION.—Upon 
determination by the Secretary that a mortgage 
lender has failed to comply with the requirements 
described in paragraph (2), the Secretary may re-
voke the registration (as described in subparagraph 
(A) of such paragraph) of such mortgage lender. 
‘‘(5) TAX
TREATMENT
OF
PAYMENTS.—With 
respect to any payment described in paragraph 
(2)(C), such payment— 
‘‘(A) shall not be includible in the gross in-
come of the taxpayer, and 
‘‘(B) with respect to the mortgage lender, 
shall not be deductible under this title. 
‘‘(6) ADVANCE PAYMENT TO MORTGAGE LEND-
ERS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a program to make advance payments 
to any eligible entity in an amount equal to the 
cumulative amount of the credits allowed under 
subsection (a) with respect to any mortgages 
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ssavage on LAPJG3WLY3PROD with BILLS
issued by such entity for which an election de-
scribed in paragraph (1) has been made. 
‘‘(B) EXCESSIVE PAYMENTS.—Rules simi-
lar to the rules of section 6417(d)(6) shall 
apply for purposes of this paragraph. 
‘‘(C) TREATMENT
OF
ADVANCE
PAY-
MENTS.—For purposes of section 1324 of title 
31, United States Code, the payments under 
subparagraph (A) shall be treated in the same 
manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section. 
‘‘(7) RECAPTURE.—In the case of any taxpayer 
who has made an election described in paragraph (1) 
with respect to the purchase of a principal residence 
and received a payment described in paragraph 
(2)(C) from an eligible entity, such principal resi-
dence shall be treated as a principal residence with 
respect to which a credit was allowed under sub-
section (a) for purposes of subsection (f).’’. 
(b) CERTAIN ERRORS WITH RESPECT TO FIRST- 
TIME HOMEBUYER TAX CREDIT TREATED AS MATHE-
MATICAL OR CLERICAL ERRORS.—Paragraph (2) of sec-
tion 6213(g) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of subparagraph 
(U), by striking the period at the end of subparagraph 
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(V) and inserting ‘‘, and’’, and by inserting after subpara-
graph (V) the following new subparagraph: 
‘‘(W) an entry on a return claiming the 
credit under section 36 if— 
‘‘(i) the Secretary obtains information 
from the person issuing the TIN of the 
taxpayer that indicates that the taxpayer 
does not meet the age requirement of sec-
tion 36(b)(4), 
‘‘(ii) information provided to the Sec-
retary by the taxpayer on an income tax 
return for at least one of the 2 preceding 
taxable years is inconsistent with eligibility 
for such credit, or 
‘‘(iii) the taxpayer fails to attach to 
the return the form described in section 
36(d)(3).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to principal residences 
purchased after the date of the enactment of this Act. 
Æ 
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