John W. Newbern, Jr.
Client: John W. Newbern, Jr.
Services: Tax
Weaver helps client obtain previously-denied First Time Home Buyer tax credit
In 1972, when John W. Newbern, Jr. inherited his father’s business, he also inherited his father’s accounting firm. John W. Newbern, Sr. had founded Nationwide Advertising Specialty Co. (www.nationwideadvertising.net), headquartered in Arlington, Texas, in 1936.
“Weaver was my father’s accounting firm well before I came on board,” recalls Newbern, the company’s president. In the 38 years since Newbern took the reins of Nationwide Advertising, he’s had just three primary contacts from Weaver: first, company co-founder Lloyd Weaver, then Bob Barnett (both have since retired) and now Jeanne Smith, the firm’s partner in charge of Tax and Strategic Business Services Partner.
In addition to providing corporate tax compliance, employee benefit plan consulting and advisory services to Newbern’s company, Smith and the Weaver team also prepare individual tax returns for Newbern and his family.
So when Newbern’s son Johnny qualified for a First Time Home Buyer tax credit after purchasing his first home in July 2008—but found his attempts to claim the $8,000 credit repeatedly denied by the IRS—his father knew exactly who to call.
“It took six months for my son to receive the first letter of denial,” recalls Newbern. “I initially attempted to appeal their denial on my son’s behalf, helping him provide the IRS with the additional documentation they requested—only to have our appeal denied again, six months later.”
Newbern suspects Johnny’s attempts to secure the credit were thwarted because of his status as a full-time law student at the time—as well as his being declared a dependent on his parents’ tax return for that year.
“Four months after he purchased the home, the law was changed to prohibit dependents from receiving the credit,” adds Newbern. “But at the time Johnny purchased his house that provision had not gone into effect.”
After a year of denials and appeals, a frustrated Newbern reached out to Weaver for help.
“Jeanne got involved and communicated with the IRS by phone. She sent them lots of supporting documentation and kept after them,” Newbern says. “I think she got a burr under her saddle because she knew we were right and they were wrong!”
Even with Smith’s help, it took nearly a second year for the Newberns’ claim to be resolved, with Johnny receiving a check for $8,000—plus interest—in August 2010.
“Of course, $8,000 is a significant sum, and to a young man in law school who lives on whatever he can earn on his spare time plus whatever we give him, it’s a huge amount of money,” continues Newbern. “I honestly believe that without Jeanne’s help and intervention, we’d still be fighting the IRS, or would have thrown our hands up by now.”
Although Newbern truly appreciates Smith’s help in resolving this matter, he wasn’t surprised at the level of service he received. “I just think the world of everyone at Weaver. Anything and everything that I have questions about, they’re always there, always helpful. The service and advice I’ve gotten from their organization has always been first class.”
John W. Newbern, Jr.
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