Notice code 691

Notice code 691 (Default) — We have disallowed the credit claimed as First-Time Homebuyer Credit on page 2 of your tax return. T…

What this IRS notice code means, and what to check before you reply.

What to do next

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691

Read the notice carefully and note any deadline. Gather returns, notices, and payment records. Book a free strategy session before responding if the amount is large, unclear, or collection language appears.

What the IRS language says

We have disallowed the credit claimed as First-Time Homebuyer Credit on page 2 of your tax return. To qualify for the credit, you must attach a properly executed settlement statement (in most cases a properly executed Form HUD-1 Settlement Statement) to your return. For a mobile home, an executed retail sales contract is required. For a newly constructed home, if you do not have an executed settlement statement, a copy of your certificate of occupancy is required. All required documents should reflect all parties’ names, the property address, the contract sales price, and the date of purchase.