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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.
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