When to Attach Form 5405 to Your Return
You may have received a notice from the IRS that conflicts with government instructions on when to attach Form 5405 to your return. If you are making a repayment of the credit and still own the home, you do not have to attach Form 5405 to your return.
We have confirmed with the IRS that the notices distributed were sent in error and they have informed us that their processing procedures have been updated to prevent further incidents.
Please read below for more information regarding when to attach Form 5405 to your return.
As a reminder, Form 5405 is required and will be included in your return for Repayment of the First-time Home buyer's credit with your 2011 tax return only if you meet the following:
- You disposed of your home or you ceased using the home as your main home in 2011.
- You purchased your home in 2009, it was destroyed or you sold it through condemnation or under threat of condemnation in 2009, and you did not purchase a new home within 2 years of the event.
In all other cases, Form 5405 is not required and the form will not be included if you meet the following:
- You bought your home in 2008.
- You still own the home and it has not been sold or condemned.
- You made your repayment of 500 dollars on Form 1040 or 1040NR.