My boyfriend and his ex have a signed legal document by their lawyer saying that in even years he claims her, on odd years she does. She is always broke and decided she wanted to go ahead and claim her this year. She already has her refund and went and bought a new tv with it. He has legal documentation saying it is his year to claim her. I've heard once he sends in his taxes along with the letter proving it is his year to claim her, she will have to repay the money she was refunded for her, and if this is not possible, could serve jail time. Anybody know anything more about this??
2007-02-08 08:51:50 · 14 answers · asked by jaded_u_714 2 in Business & Finance ➔ Taxes ➔ United States
Your boyfriend should in fact be able to claim the deduction. What happens to his ex is really a bit tougher to say. There is a good chance she will be flagged for an audit, meaning she will need to either come up with proof that she took a legal deduction (which she can't) or pay the taxes owed. Depending on the amount of taxes, failure to repay COULD result in jail time and some very damaging financial repercussions.
2007-02-08 08:59:11 · answer #1 · answered by Tim 3 · 1⤊ 0⤋
Yes, legally she will have to repay the money. If she does not have the money, then the IRS will claim colateral that would retail out (and be taxed) at the same rate it was purchased and the retail value of the repossesion would be the same as the amount owed. Ex.: Federallly cheated taxes would be claimed in property, real estate, etc. If it is the state, then a court date would be set and she would have to either pay the taxes back or serve a community service or serve time, it's whatever the state decides. (don't know what state you live in)
Also: if all else fails, she can avoid the whole thing, pay the money back or let it show up on back taxes next year and deduct it (or add it to a balance owed) from an income tax. (This will prolly be the scenario because of how long it would take for her to get caught or the feds to process this case)
2007-02-08 09:03:14 · answer #2 · answered by Royal R 2 · 0⤊ 0⤋
The IRS will investigate the issue and determine who gets the exemption. If the agreement you mentioned meets the IRS requirements then the child's father will get the exemption. The IRS rules are very specific and many of these agreements (even court decrees) don't meet the IRS requirements and are rejected by the IRS so you should be prepared for that possibility.
If the father gets the exemption, the mother will just get a bill for any taxes due if her return has already been processed. The IRS usually does not prosecute these cases, they're treated as a civil duspute and the loser simply pays more tax.
2007-02-08 09:07:50 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
This will delay the tax return and any refund involved! Most of the time your boyfriend will have to show proof (legal documentation) to the IRS showing he has the right to claim this child and then the mother will be red flagged with the IRS for filing a false claim and she will have to pay back any refund associated with the child (earned income credit, child tax credit) plus fines and penalties
2007-02-08 09:16:08 · answer #4 · answered by ~Sabie~ 2 · 0⤊ 0⤋
I think I follow. You are the bio-dad. For 2008 and 2009, you had custody. That means you were the one to claim the child for all purposes, including exemption, child tax credit, child care and EIC. The now expired mediation agreement indicated that every other year, someone could be signing the form 8332. As far as the boyfriend goes. Back in 2006, he *could* have been eligible. For 2007-2009, clearly he wasn't. In order for the boyfriend to be eligible to claim the child as a "qualifying relative" (no child tax credit and definitely no EIC), he has to live with the child all year, provide more than half of the child's total support *and* with the bio-mom living with him, she couldn't have a filing requirement of her own. For 2009, what did you do after the tax return bounced on the efile? Did you tell your preparer to PRINT IT as is, sign it and mail it in or what? Mailing it in was the cleanest and quickest solution as the IRS would have processed it and started the investigation immediately. Taking the child off and amending later slows everything down, but the duplicate SSN use would have been investigated. Taking the child off and not doing anyhing accomplishes nothing. Filing first does not mean they won.
2016-05-23 22:24:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
He should send in his return by mail. Attaching the info on why he can claim her can't hurt.
The IRS will notify both of them that they need to prove that they are the one allowed to claim the daughter (if he's already sent it with his return, they might just take that but will probably ask for it again). Then the person who was not eligible will have to pay back what they got that they weren't entitled to. It would be unlikely they'd end up serving jail time though.
2007-02-08 13:42:17 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
He needs to contact the IRS and tell him what she did and send them a copy of the legal document showing that it is his year to claim her. He can go ahead and claim her and they will make his ex repay the refund that she did not deserve to get this year plus they will probably charge her fines and penalties.
2007-02-08 09:01:57 · answer #7 · answered by Anonymous · 0⤊ 0⤋
She broke the law. Your boyfriend should talk to his attorney, produce the documentation, and she'll have to pay it back. If she can't, she'll go to jail. I feel badly for her, but she should have known better, especially if she bought a tv with it. How dumb is that?
So yes, you are right about what will happen. It is a good thing your boyfriend has kept track of the legal matters. It could easily happen to anyone by mistake if they are not diligent about tracking this sort of thing.
2007-02-08 09:00:50 · answer #8 · answered by Mr. Taco 7 · 0⤊ 0⤋
The IRS doesn't play around. If he has legal proof of your claim, they will come after her for the money.
Even with a divorce decree, the custodial parent must sign a tax paper ( Form 8332, "Release of Claim for Child of Divorced or Separated Parents," signed by the custodial parent.) for the non-custodial parent to be able to claim the dependent child on their taxes. If she refuses to do this, she could be found in contempt of a court order. It should be noted that failure to comply with a court order concerning custody can result in a change of custody and and she would in turn, be required to pay child support to him. He should talk to his lawyer, the court may file charges against her.
2007-02-08 08:59:31 · answer #9 · answered by ©2009 7 · 0⤊ 0⤋
If there is a fully executed document have it ready. The IRS will question the exemption, reduce your BF's refund and send him a notice. Never fear, he'll win.
What happens to the ex doesn't matter. Fuggda boutit
2007-02-08 09:01:38 · answer #10 · answered by smh60437 3 · 0⤊ 0⤋