Problems with NCP and taxes

[DawnPlusTwo]

What is the name of your state (only U.S. law)?

OK

Hi everyone, just a (hopefully) quick question.

NCP has right to claim tax exemption for our Son for odd years. I was under the impression that, since kiddo DID live with me for the entire 2009 year, I would still be able to claim the EIC.

Well, I went to e-file my return last night and it was rejected this morning because Dad has already claimed the child for EIC. I'm not even sure how he filed taxes, because he refused the signed 8332 form I sent him.

Anywho, Was I correct in believing that I could still claim EIC for son? I used H&R Block online filing to help me through, and it seemed as though what I tried to do was legal.

Dad told me today that he had Jackson Hewitt do his taxes this year and all he had to show was our court order, and he said I was wrong in believing I could file EIC, because that is what his tax preparer told him. Oddly enough, I spoke to the manager at the very office he went to last Thursday, and she told me I was allowed.

I'm not sure where to go from here. I know I will likely have to file a paper return, but before I go that route, I just want to triple check that I am not wrong.

Everything has been a mess, since Dad came up with his grand scheme. He has decided NOT to continue paying CS. His plan is to take me back to court next year and ask to be put on another payment plan, so that he is considered "current" for tax purposes. Yes, he did acually tell me all of this. And yes, my former atty says he is "current" because he is on a payment plan. I plan to file contempt after 3 months have passed with no support.

Thank you all very much for your time!

 

[poppabear]

The only advice I have is from personal experience, and it is to go ahead and file without claiming the child, then later file an amended return to include the child. The IRS will conduct an investigation (which can take quite a while) but in the meantime you can get the rest of your return, if you are entitled.

This is what my tax preparer had me do the year my ex claimed DD (who lived with me) and by August I had the rest of my return, without having to wait for the entire amount.

This year I was told that unless my ex had an 8332, the IRS will automatically give credit to the CP, so without it your ex may be SOL.

 

[Proserpina]

And if all else fails, contact the Tax Advocate Service at 1-877-777-4778

 

[LdiJ]

What is the name of your state (only U.S. law)?

OK

Hi everyone, just a (hopefully) quick question.

NCP has right to claim tax exemption for our Son for odd years. I was under the impression that, since kiddo DID live with me for the entire 2009 year, I would still be able to claim the EIC.

You are correct.

Well, I went to e-file my return last night and it was rejected this morning because Dad has already claimed the child for EIC. I'm not even sure how he filed taxes, because he refused the signed 8332 form I sent him.

Dad committed tax fraud.

Anywho, Was I correct in believing that I could still claim EIC for son? I used H&R Block online filing to help me through, and it seemed as though what I tried to do was legal.

Yes, what you tried to do was legal.

Dad told me today that he had Jackson Hewitt do his taxes this year and all he had to show was our court order, and he said I was wrong in believing I could file EIC, because that is what his tax preparer told him. Oddly enough, I spoke to the manager at the very office he went to last Thursday, and she told me I was allowed.

Dad lied to Jackson Hewitt, or got a Jackson Hewitt preparer who didn't care squat about the law.

I'm not sure where to go from here. I know I will likely have to file a paper return, but before I go that route, I just want to triple check that I am not wrong.

If the child primarily lives with you then you are the only parent who is allowed to claim EIC. You need to file a paper return. Yes, the IRS will investigate later, but dad will be the person who ends up paying back the IRS, not you.

Everything has been a mess, since Dad came up with his grand scheme. He has decided NOT to continue paying CS. His plan is to take me back to court next year and ask to be put on another payment plan, so that he is considered "current" for tax purposes. Yes, he did acually tell me all of this. And yes, my former atty says he is "current" because he is on a payment plan. I plan to file contempt after 3 months have passed with no support.

Thank you all very much for your time!

 

[DawnPlusTwo]

Thank you all so much!

I have my paper return just about ready to be mailed off. Question: Should I send anything in with it? Such as court order or medical records? For proof that kiddo did live with me?

Dad threw his tax papers in my face today. What he did is turn in the original Petition he filed with the court asking for custody. He also filed our son with his old name (court ordered to hyphenate from just mine to mine-his). On the preliminary paper Jackson Hewitt, he wrote that our son lived with him 12 months. Also claimed his sister who I know for a fact does not live with him. It was quite interesting to see the mess he has gotten himself into. Not sure why he felt compelled to show me how he committed tax fraud.

 

[TinkerBelleLuvr]

Hi Dawn,

There is this thing with EIC fraud that might come back really bad to bite him. You see, you can PROVE that the child lives with you; he will not. In addition to him having to repay the IRS for said monies, the IRS can very well ban him from claiming EIC for either the following two years or the following TEN years.

In order to keep the Earned Income Credit program in existence, it is very important that it be fair and that only people who are eligible claim it on their tax returns. Fraud (e.g., individuals who attempt to claim the EIC when they, in fact, know they are not eligible) is very damaging to the EIC program as it reduces the public's and lawmakers' desire to support it. If you have good reason to believe that someone is claiming the EIC in a fraudulent manner (for example, they claim a child on their tax return who is not their own or for whom they are not responsible) you can report it to the federal government by calling the Internal Revenue Service's hotline for tax fraud. The phone number is 1-800-829-0433.

What happens if I make a mistake or error or provide false information in claiming the EIC?

It depends:

*

If you made an unintentional mathematical error in your computations, the IRS will likely catch the error and correct your mistake and credit you the proper EIC amount. If you make an unintentional clerical error (e.g., you provide an incorrect Social Security number), the IRS will likely require you to provide the correct number before they release the EIC to you.
*

If the IRS decides or determines your error was due to "reckless or intentional disregard of the IRS rules" it can deny your claim and prohibit you from claiming the EIC for the year in which you applied as well as the next two years.
*

If the IRS decides that your error was due to fraud (i.e., you intentionally provided false information to the IRS in order to try to claim the EIC when you weren't eligible or a higher amount than you are entitled), the IRS can prohibit you from claiming the EIC for the year in which you applied and the next 10 years.

In sum, making a small unintentional mistake when applying for the EIC should not present a problem. But giving deliberate false information to the IRS when claiming the EIC is a very bad idea.

For anyone who’s EIC filing was denied or reduced in a previous year, you will likely need to complete Form 8862, Information to Claim Earned Income Credit After Disallowance, and attach it to your tax return.

http://www.taxcreditresources.org/pages.cfm?contentID=34&pageID=12&subpages=yes&dynamicID=553#fraud

 

[Proserpina]

Tink, that is some awesome information!

 

[TinkerBelleLuvr]

Thank you all so much!

I have my paper return just about ready to be mailed off. Question: Should I send anything in with it? Such as court order or medical records? For proof that kiddo did live with me?

Dad threw his tax papers in my face today. What he did is turn in the original Petition he filed with the court asking for custody. He also filed our son with his old name (court ordered to hyphenate from just mine to mine-his). On the preliminary paper Jackson Hewitt, he wrote that our son lived with him 12 months. Also claimed his sister who I know for a fact does not live with him. It was quite interesting to see the mess he has gotten himself into. Not sure why he felt compelled to show me how he committed tax fraud.

Just file your paper return; it'll probably be between 3-4 weeks for your return. Later in the year, both parties will be asked to produce the records showing that they were eligible to claim the children. For your son, you have custody papers and things like his medical records showing YOUR residence for said child. They give you a list of things you need to provide. The loser gets to pay back the money, along with possibly said penalties I quoted above. Nothing says you can't call the fraud line about the sister.

 

[CJane]

Just file your paper return; it'll probably be between 3-4 weeks for your return. Later in the year, both parties will be asked to produce the records showing that they were eligible to claim the children. For your son, you have custody papers and things like his medical records showing YOUR residence for said child. They give you a list of things you need to provide. The loser gets to pay back the money, along with possibly said penalties I quoted above. Nothing says you can't call the fraud line about the sister.

She also has that handy dandy restraining order.

 

[LdiJ]

Thank you all so much!

I have my paper return just about ready to be mailed off. Question: Should I send anything in with it? Such as court order or medical records? For proof that kiddo did live with me?

Dad threw his tax papers in my face today. What he did is turn in the original Petition he filed with the court asking for custody. He also filed our son with his old name (court ordered to hyphenate from just mine to mine-his). On the preliminary paper Jackson Hewitt, he wrote that our son lived with him 12 months. Also claimed his sister who I know for a fact does not live with him. It was quite interesting to see the mess he has gotten himself into. Not sure why he felt compelled to show me how he committed tax fraud.

How can anyone be THAT stupid? What's more, the tax preparer was equally stupid. We now have very stringent due diligence requirements that we must document and meet.

Dad refused the form 8332, because to include that with his return would admit that he is the non-custodial parent, and therefore he would not be able to claim EIC.

I hope that he gets audited and nailed on BOTH children...because its clear cut fraud on his part.