Received 2008 first time home buyer credit but sold the home in June 2015

[PatriciaR]

If the home ceased to be your main home prior to 2016, it should not be showing an outstanding balance, and no 5405 is required.  The reject message you are receiving is because the IRS has not properly updated its records and believes (based on their info) that a 5405 with a payment is due in 2016. 

 You can look up your account at this link:  https://www.irs.gov/individuals/first-time-homebuyer-credit-account-look-up

 To resolve this, you will need to paper file your return this year.  Attach a copy of your return for the year the property was sold, to show that you properly filed in that year.  Additionally, you will need to contact the IRS directly to have them correct their records so you don't encounter this same issue next year.