My sister has two children, a girl and a boy. When she divorced, she took the girl and the husband took the boy. Three years ago the ex was sentenced to prison for child porn. He served three years and was released this May. The son moved in with my sister for 3 years. (He's 18 now)
Now, the IRS is asking her for PROOF that she had the care of her son for two of the years b/c the ex's g/f claimed him for the year he was sentenced. She has provided the IRS with school records, copies of her dl showing she resides in the district. They're also questioning the earned income credit for her daughter for 2009.
She supplied them with EACH and EVERY piece of information they required, now they have refused to accept this proof. They sent her a bill for 14,000 b/c of the loss of earned income credits. The housing she resides in, you can ONLY reside in if you have children in the school district as it's government subsidized. She works, earning $14.00/hour. She cannot afford a tax attorney.
How can she fight this? The IRS keeps adding interest etc...it's just getting larger everyday.
I probably don't know what IM talking about but is there a commissioner for IRS. when my house insurance would not pay me for damage I called the commissioner of insurance and they sent me a check. Sorry I wish I could help. Don't give up!!!
My DD is divorced with 3 kids and the divorce decree said he claims 1 ex-wife claims 2 on even years, then odd years it flips he claim 2 ex claims 1. Earlier this year, filing for 2011 he claims his 2, but she claims all 3. Grrr. IRS changed the laws last year for the children of divorced parents, I think it goes back to 1985. The IRS told us the divorce decree doesn't matter, it's which parent the kids were with most of time. Legal Aid in our area said we would have to take ex to court, because legal aid doesn't deal with post divorce issues.
Try to Google the state your sister lives in and the words IRS,pro bono and attorney. Or try calling Lawyer Referral Service or local bar association in her area.
Here's a link, that maybe helpful http://www.irs.gov/publications/p504/ar02.html#en_US_2011_publink1000175898
Scroll down to table 3, it is going to depend on what year her final divorce decree went into effect and whos home the kids spent the most nights in a year was.
How could a girlfriend claim dependency on a kid that,
a - didn't have custody (either legal or even physical) of the child in question
b- didn't have any legal ties to the child what-so-ever
c- did not claim the child any previous years.
In order to claim a dependent wouldn't she have had to ADOPTED the child for her to claim the kid since she was not married to the ex? Why they would accept some random person (yes she was the GF of the father, but as far as the government is concerned she's just some woman) as the care-taker and not the actual child's mother.
I'm not sure I totaly understand the part about the IRS not accepting the proof.
Perhaps it was not valid forms of proof that they would require and that they need something else. I think if you could prove he was incarcerated then the default would be that you were awarded custody. No matter what a GF would have to go to court to fight to keep custody of a child - and that would include adopting the kid - which I'm more than sure is NOT the case here.
The IRS has offices all over, I would contact one and ask for what types of proof do they require for proper verification that you had sole (or at least majority) custody of the child. Even though interest is being added, if you can at least prove it, it would all go away once its cleared.
You don't have to have legal custody in order to claim a dependent. Only ONE dependent can be claimed though. Since my nephew lived with the ex and his g/f....the g/f claimed him as a dependent for that year. He lived with them for the first four months of the year. He then moved in with my sister. My sister claimed him AND the g/f claimed him. The IRS has asked for 3 proofs....copy of ss#, copy of birth certificate and a document from the school he attended that year, stating that my nephew lived at my sisters residence. Which he DID. The school DID provide a copy of the address change form. My sister moved into a different city for the next school year (beginning in Sept), and those records have been provided and submitted.
My sister has also sent copies of the online record stating that the dad was sentenced, etc.
My CPA has given her the # to the Taxpayers Advocacy Group....hopefully that will provide some assistance.