First Time Homebuyer Credit and Divorce - How to take responsibility of repayment

[TCHollar]

Hello.

I was divorced in 2015, and was given ownership of our home. My spouse never filled out the form 5405 to transfer repayment of the first time home buyer credit to me. I've been paying the $500 every year, but now I have repaid all of my half of the credit, and the IRS will not let me continue paying.

My spouse is overseas, does not file taxes and I do not have a way to contact him to try to get him to file this form. Is there a way for me to notify the IRS that the repayment should be my responsibility so that I can continue paying it?

I tried asking an attorney and a financial consultant, but neither had an answer other than that I am responsible for payment, but now how to accomplish that. I would even be fine sending full remaining payment to the IRS on his behalf just to make sure it's taken care of.

Thank you!

[CatinaT1]

This IRS site will allow you to look up any balance remaining and also lists a phone number to call for assistance:  First Time Home Buyer Credit

[LINDSEA]

yes, but isn't it illegal to lookup someone else's information? It mentions in the privacy statement that you are certifying that you are the person looking up your information. 

[LINDSEA]

also dont they have to transfer their amount owed to you in order for you to keep paying? What if they dont and you are not in contact?

[Crazymama1978]

This first time homebuyer credit is a nightmare. I gave the home up in a divorce in 2018. I am no longer responsible for the credit. He is as he wanted the house. But now i am responsible to file a form 5405 every year to prove i am not responsible for it. Which was fine and worked every year.

But now the software to file my taxes will not let me add the form 5405. It simply says I am not responsible for it. And the form is not needed.  Thanks i knew that. But the IRS rejects my taxes without the form. So I have tried 2 different software products this year. And i have paid for both. And both will not just add the form so i can file. I can't get anyone to help me on the IRS line. 

I called every week asking for help to remove the status from my acct. And i am told to be patient it could take a while. But I have called them every year to try to address this same issue. So now i am not sure what I can do. The IRS First time homebuyer line listed as [phone number removed] says it no longer provides assistance for this subject. 

My ex husband has since sold the house. And I am sure they are trying to get me to repay parts of it. Because He is not paying taxes and has gone off grid. Homesteading as he calls it. I guess my lesson here is free money is bad money.

[Crazymama1978]

That is where i am at. I have filed the form 5405 every year as required to do so. And they will not remove the credit amount an add it to the other spouse. It is wonky. 

[SusanY1]

The IRS will also now reject 5405 that doesn't include a payment.  If you haven't yet tried to submit your return without the form, I suggest doing so.  

If your return is rejected for not having the form attached, the only remedy is to file by mail. 

Sometimes you can reach the IRS special hotline for this credit to have them remove the requirement, but often it does not fully update until the next tax year.  That number, as well as the lookup site (which verifies the credit is still tied to your Social Security number), can be found HERE.