Oh shit..Audit.

The the IRS decided to Audit our 2008 homebuyer's credit.

Turned in all the stuff. But since we paid cash for the house, I couldn't show anything on a mortgage. The lady at the IRS told me to just send in some bills for the household, aka gas, water, electric. So I did.

Just got a letter saying we failed their examination and have to pay it all back. UHM? Sorry? I live here. We have lived here. It is our first house. No other way to show this?

So, I have a bill for 10% of what we paid for the house. Yeah, because we can just pull that out of our pockets. I called my mom, hyperventilating and sobbing. She said to have our tax preparer take a look at it, and see if their is any other way we can prove we live here and have the financial responsibility of the house. Then my mom said "if you have to pay, they'll go by you income on payments." Well, loophole right there. George isn't on our house, and we weren't married at the time. So, our income is the measly amount I get from unemployment. Payments on that couldn't be more than $100 a month. So, I would be paying for years. But at least it isn't much. Either way, the idea of this makes me want to hurl.

Advice?