My ex husband and I divorced in 2015. We took a first time home buyer loan that became payable annually in 2010. I retained the home after the divorce. My ex husband neglected to file the 5405 in 2015. I have been making the $500 annual payments - as I should - until last year when the IRS would not accept my electronic filing because their system says I don't owe anymore. I called them, but they said I can't pay it, that my records indicate that I paid my half already. I had no way to reach my ex husband and now he is deceased. I know I owe the money and I am afraid that once the IRS catches up they may want me to pay penalties and interest. Anyone have experience fixing this? Should I go ahead and efile and wait for the rejection just to show good faith in my effort to pay this? TurboTax shows it is payable, which is correct.
You can do that. But you will need to remove it before your return will get accepted. You can also include it and file by mail but I would not recommend that.
You can sign into your IRS and print out your records that should show that it is paid (according to who you spoke to at the IRS). Here is the link to view your tax records. You can print out your account balance and keep it in case they ever attempt to bring it up again. But if they show it paid, they will refund you the money even if you do include it.