What should be the next step in handling this situation?
2007-06-17 00:45:06 · 9 answers · asked by flygyrl101 1 in Business & Finance ➔ Taxes ➔ United States
Yes.
The next step for you is to file a paper return and mail it in. The IRS will contact both taxpayers and request either an amended return or information to substantiate your claim. They'll then determine who is legally entitled to the exemption according to the law and award it appropriately. The other person will get a bill for any tax due plus penalties and interest if it's after the filing deadline.
The IRS will not discuss the other taxpayer's return with you, nor will they reveal who the other taxpayer was.
BTW, you cannot "approve" of anyone else claiming your children as dependents except in rare circumstances. You can give the exemption to the other parent if you are separated or divorced, or someone else if there is a multiple support agreement in place and either or you would qualify for the exemption claim had you provided more than 50% of their support. The law determines who gets the legal exemption claim, not the taxpayer!
2007-06-17 01:50:12 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Under most circumstances, you are not allowed to give someone permission to claim your child. The exception is if the person is the other biological parent of the child and you are the custodial parent and you are legally separated or divorced, or were never married - then that person can claim the child if you give them written permission, saying that you won't also claim the child.
If the other person is a close relative like a grandparent, aunt or uncle, or sibling of the child, and the child lived with them for over half the year, then that person can claim the child, and doesn't need your permission unless you also lived with the child for over half the year - if you did, they can only claim the child if you don't.
If someone else claimed the child except as noted above, then they did so illegally, and if and when the IRS catches them, the exemption will be disallowed and they'll have to pay back any taxes they saved, plus penalties and interest. If they claimed the child WITH your permission, then you're in trouble right along with them. You can't give permission to claim your child to someone who doesn't have the legal right to do so.
If you also filed a return claiming the child, the IRS will automatically investigate who has the right to the claim, and disallow the other one. If you didn't file a return or didn't claim the child, you can report the situation by calling the IRS.
2007-06-17 04:23:46 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You are not automatically entitled to claim your child on your tax return. There are circumstances where another person could claim your child without asking you. I won't list all of them, but a couple of examples:
1. The other parent who lives with the child
2. A grandparent who supports the child that the child lives with (and you do not live with them).
If you are entitled to claim your child, file your tax return claiming the child. If another person has claimed your child, the return will be rejected. At this point, re-file a paper return, claiming the child, attaching documentation that this child is your dependent. The IRS will take it from there.
In cases where a child has been claimed improperly, it may or may not be a crime depending on the circumstances. For example, the child may be a tax dependent of the person, but you have a higher claim. That would not be considered a crime. But if the child were not a tax dependent and was claimed, that may be considered fraud. Rarely would the IRS pursue criminal charges.
2007-06-17 10:14:30 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
If they did not meet the requirements to claim them as a dependent like 50% of support, a relative, etc. then possibly. If this is the child's other parent then no. But the custodial parent probably will claim them. The IRS will know if one too many person have claimed them, and unless there is a court order, or some other evidence, the IRS and courts will go with the custodial parent.
2007-06-18 16:11:55 · answer #4 · answered by InsideMan77 2 · 0⤊ 0⤋
It depends. Is this person the mother, father or grandparent who has contributed over half of the child's support over 7 months out of the year? Is there a court order. Who has legal custody? These are all the questions that need to be answered. Next consult with a tax attorney. Notifying the IRS will put a red flag out there on whoever is claiming the child and probably on your returns also. So, I would be very careful there. You haven't given enough information in your question for anyone to give you a real definitive answer.
Good Luck!
2007-06-17 00:54:08 · answer #5 · answered by Moody Red 6 · 1⤊ 1⤋
If that person provided support for the child for six months or more of the year in question, they have a legal right to claim the child as a dependent. If they did not provide support for the child, then it is called tax fraud and is a serious offense. You should report it to the IRS immediately. If you also claimed the child, the IRS will want someone to repay the monies distributed to the illegal party. If you did not but had a legal right to do so, you can sue the person in either small claims or circuit court for the monies due you.
2007-06-17 01:01:37 · answer #6 · answered by Anonymous · 0⤊ 3⤋
wrong and illegal, not only will their taxes be audited but they will have to pay back, with interest all money that they should not of received, and possibly jail time. Report them to the IRS,
2007-06-17 01:57:35 · answer #7 · answered by Pengy 7 · 0⤊ 1⤋
Yes it is wrong and you call the IRS and report them.
2007-06-17 00:54:00 · answer #8 · answered by Shae 3 · 0⤊ 2⤋
Heck ya!
Contact the IRS. They love to hear stuff like this.
2007-06-17 00:53:19 · answer #9 · answered by F T 5 · 0⤊ 4⤋