Discussion Archives:Ex-husband claims dependent

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Advanced Tax Questions --> Ex-husband claims dependent


Discussion Forum Index --> Tax Questions --> Ex-husband claims dependent

Dhtax (talk|edits) said:

30 January 2012
My client is divorced, custodial parent of two children (they live with her full time) and eligible for EITC. When I filed the return it was rejected because one of the children had been claimed on another return -- presumably the ex-husband's, and I assume he claimed EITC as well. The mother has never signed a release. I re-filed with just the other child to get at least part of her refund.

What's the best way to get this fixed with least delay and hassle to the mother, and how long is it likely to take? This reduces her refund by almost $2K, and she's hurting. She can supply school records, etc, showing where the kids live.

And I imagine the ex will be in deep doo doo, no? Anyone know the details?

Bracket Creep (talk|edits) said:

30 January 2012
Whadaya want to bet that the yellow box knows the details?

BobTheMobCPA (talk|edits) said:

30 January 2012
Bracket Creep, are you suggesting that this might have happened to some other taxpayer in the past?

Bracket Creep (talk|edits) said:

30 January 2012
No, I'm suggesting that those who don't try the yellow box first, looking for similar discussions, are rude. They think that their time is more valuable than our time.

Dhtax (talk|edits) said:

30 January 2012
Creep: How about pointing me? I tried a couple of searches that didn't result. Maybe I'm not as good as you at formulating search terms.

Bracket Creep (talk|edits) said:

30 January 2012
Discussion Archives:HUSBAND CLAIMS CHILD

Death&Taxes (talk|edits) said:

30 January 2012
Ex believe in getting there fustest with the mostest:

Bracket Creep (talk|edits) said:

30 January 2012
Discussion:Client has court order to claim child

Bracket Creep (talk|edits) said:

30 January 2012
Discussion:Both clients of firm - both want to take kids

Death&Taxes (talk|edits) said:

30 January 2012
Discussion: Honoring divorce decree

Bracket Creep (talk|edits) said:

30 January 2012
Discussion:Client wants to "turn in" ex-spouse for "fraud"

Bracket Creep (talk|edits) said:

30 January 2012
Discussion:Divorcing couples and deductions

Death&Taxes (talk|edits) said:

30 January 2012
Discussion: Court Custody vs IRS

Discussion: Non custodial parent claiming dependent

Discussion: Ethics / Circular 230--taxpayer lies

Bracket Creep (talk|edits) said:

30 January 2012
Discussion:How to handle couple who have split?

Dhtax (talk|edits) said:

30 January 2012
Thanks for the pointers -- I had seen some of those discussions, but they don't answer my questions, which is why I posted:

1) Is there any way to avoid a 6-8 month or more delay in the mother getting the refund due her? If we have to wait for letters from the IRS this is going to take forever. Will it be faster to just file a 1040X with residency documentation attached?

2) What penalties will be applied to the father? I assume he'll be banned from EITC for a period. Anything else?

Thanks

Fsteincpa (talk|edits) said:

30 January 2012
I still believe we need a search term thread. I am the worlds worst searcher. I watch the new series Finder on TV just to see if that would help.

I've got the same situation, solution is simple, just not what the client wishes to hear. File correctly on paper and await the notice to prove it's correct.

My client also wishes to file with one less kid and then send in an amendment. We'll have that discussion when she comes in next week.

Death&Taxes (talk|edits) said:

30 January 2012
How can you file a 1040X on an efile rejection?

The way to punish the husband is thru state court, which is the point of several of the cases in those discussions. Betcha if her lawyer calls his and threatens, the money may come from him, not IRS.

Kevinh5 (talk|edits) said:

30 January 2012
Well, the suggestion to file the correct return by paper would help, rather than e-file with one child, then amend by paper to claim the second. That kind of makes YOUR taxpayer look like she's doing the sneaky thing, instead of the other way around. Oh, I read that in one of the above linked threads.

Kerryfreemanea (talk|edits) said:

30 January 2012
Dhtax, I would like to aplogize for my peers busting your balls. However as an EA I wonder about your knowledge and research skills. This can not be the first time that you have experience this. if so, where can i move to get away from this. I see this every year. These peers here are really here to help and past post are also for your help. Good luck.

Dhtax (talk|edits) said:

30 January 2012
I filed the return with one child so she'd get some refund. She needs it now, not in six months. This is a divorced mom with two kids, part time job, and food stamps, being supported partly by her parents. She also happens to be my daughter. I plan to file a 1040X adding the second child.

Ddoshan (talk|edits) said:

31 January 2012
Dhtax ... Good for you.. seems like a perfectly satisfactory way to handle the situation. Under the circumstances I would have done the same thing. Mom needs the money. Now we just hope that mom is honest about the situation. One can never be certain of these things.

CathysTaxes (talk|edits) said:

31 January 2012
IMO, it's not a good idea to file a return that you know is incorrect. Since the mom is the one entitled to claim both children, the best way to handle this would be to have filed a paper return. Yes, there's a big delay, but once your client is able to prove that she was entitled to the deduction, the ex is in serious trouble, especially if he got EITC for doing so.

MilTaxEA (talk|edits) said:

31 January 2012
It doesn't sound like she filed an incorrect return, rather she didn't claim one of her children (perfectly legal). I use a similar strategy for people claiming the adoption credit and FTHBC. They file a correct return, and the amend it for the portion that takes long (but only reduces their taxes).

Now I would not use this strategy if the part left off affected their taxable income/credits such that it understates their tax liability on the original return.

Tax Writer (talk|edits) said:

31 January 2012
DHTax, I agree with MilTaxEA, but I also agree with Cathy and Kevin. I understand that there might be a problem with a delayed refund, but there's a chance that amending the return and adding the second child causes a red flag for your daughter and even more headaches. The amended return will take months to process, and by the time the custodial issue is worked out, you might even be into the next filing season. I'm not joking.

I would have filed the return correctly, and waited. The husband could get slapped with a 2-year or 10-year prohibition from claiming EITC (2 year prohibition is for negligence, and 10 year prohibition is for fraud).

Also, there's a always a chance it's not the Ex-Husband--it may be something as simple as a keying error, or even perhaps even identity theft.

Dhtax (talk|edits) said:

2 February 2012
Thanks for all your comments. Since the "client" is my daughter I'm very familiar with the situation, we're clear on where my grandkids live, and we're quite sure it was the ex who claimed one -- he told her. He got his W-2 before she did, unfortunately. And yes, the return is correct in the sense that it does not understate her income or tax liability.

BTW, as to e-filing a return to get the main refund quickly and then filing a 1040X to get more: I've done this many times, eg where the amendment required an ITIN for a dependent or spouse and would therefore take months to process. I don't see any problem with doing it this way; at least the client gets part of what is due to them.

Personal tools