Discussion:Wrongfully claimed dependent
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Discussion Forum Index --> Tax Questions --> Wrongfully claimed dependent
| 13 February 2008 | |
| My client's efiled return was rejected because his grandchild that he claimed as a dependent was previously claimed on another return. He is entitled to the dependent and not the other person. When we paper file the return, should we attach any kind of statement stating such? Or should we wait for the IRS to request documentation? Do any of the "extra" documents and/or statements actually get looked at by those processing the paper returns?
Some background: Baby's father (let's name him "Jerk") did not live with his wife and child since the baby was born in September 2007. Wife and child lived with client (Granddad). Jerk gave wife and child a paltry total of $500 in 2007 for their living expenses. Jerk was supposed to give more, and even complained about giving that much. Then he files his tax return claiming baby as his dependent. (This background is probably extraneous information, but it sure felt good writing it!) | |
| 13 February 2008 | |
| You should definately file a statement including all information that justifies your client's claim. The IRS, either way, will send a letter to both parties asking that they verify the claim with documentation.
The letter also says something along the lines of "if you rightfully made this claim you don't have to respond to the letter. The more information you provide the better for your client. The IRS will go after the other guy, take the child off of his return and make him pay the difference in tax liability caused by what he did. I did exactly the same thing a few years ago under pretty much similar circumstances. Then took the child every subsequent year that qualified with not a peep out of the IRS. taxea | |
| 13 February 2008 | |
| "Do any of the "extra" documents and/or statements actually get looked at by those processing the paper returns?"
No. IRS prefers not to increase the pay of the "processors" to technician level and slow down the refund process. Funny how Congress can influence how a gov't agency manages things. | |
Taxestaxes (talk|edits) said: | 13 February 2008 |
| I have this happen at least once every year and already 3 times this tax season. And as Taxea says, the IRS will go after the other person if you show the right documentation. As I have been told and it has been posted on this board, whoever files first.....but remember, you can always mail yours in and win in the end :) | |
