BM took SD as a deduction on her taxes

[Ref]

Every year I extend our return because I'm a public accountant and by the time I get done doing everyone elses returns, I can't get to ours. Anyway, I just went to file electronically for Fed and State and the return was rejected because BM already filed with SD as a dependent.

This is DH's year to claim SD. He has all the docs required. Now we have to paper file.

So this is our problem. SD graduated highschool this year. DH is finally free from all the craziness of BM, for the most part. He would lose out on a chuck of cash if he lets it slide, but we are expecting a baby soon and could really use the cash. On the other hand, who needs the additional stress of a crazy BM in our lives anymore....

Anyway, to make a short story long , if DH were to paper file and claim SD as he is entitled to, how will BM be notified? I am picturing a letter from the IRS stating that she underpaid and needs to pay back the money she got from claiming SD.

What do you think?

Ref

[Kitty C.]

We had the same thing happen, tho DH was entitled to claim SS every year as long as he was current on CS as of 12/31.  The year in question was when BM had CS switched from county enforcement to CSRU and there was a delay in CSRU getting the money to her, so she thought it was 'late.'

We claimed SS immediately.......I usually have our taxes filed within 5 days of receiving our W-2's, but shortly after that is when BM made the accusation.  We provided her with everything, including a print-out from CSRU, but she wouldn't accept it.  So we went to CSRU and asked for a notarized copy.  By the time we got it and she finally accepted it, it was past April 15th, so we were certain she'd claimed SS, too.

Sure enough, right before Christmas that year, we received a notice from the IRS that a SSN had been used on two different returns and it was SS's.  The letter said that if we'd filed our return properly, we could 'disregard' the notice.  BUT......if we needed to correct our return, the form included needed to be filled out and returned to them.  We knew we'd filed correctly, so we disregarded it.  But after Jan. 1, I called the local IRS office and actually talked to a human.  I explained the situation and asked what we could do to prevent this from happening again.  Quote her: 'He who files first, gets.'  Which is why our refund was not compromised that year and we haven't had a problem since.  But we have no idea what happened to BM...I am assuming the IRS didn't give her the refund she was expecting, but she certainly hasn't given that information up willingly!

Long story short, if you file, BM will be notified (it might take a few months) by the IRS that your SD's SSN was entered on 2 separate returns.  From there, it's anybody's guess as to the turn out, since in our case we filed correctly, but in yours, BM didn't.  The problem is, it can take a long time to resolve and even if they determine that your DH is entitled to the deduction, who knows how long it will be until you receive it.  They won't hold your entire refund, just what you're currently entitled to (w/o the deduction), then investigate and work out the rest.

If you still have questions, try contacting your local IRS office.  You probably will have to weed through their phone bureaucracy but hold out until you actually reach a human.  I'm sure they can give you more definitive information.  Hope this helps!

[gemini3]

I wouldn't try going through the IRS because I don't think it would get you anywhere. 

If you do decide to pursue it, I would seek civil remedy.  She is in contempt of court if it states that your husband gets to file.  I would file a show cause and ask that she either pay for the difference, or that she re-file a corrected return so that you can file yours, and that she have to pay any penalties and court fees.

[Kitty C.]

Gemini, unfortunately when it's an IRS issue, the IRS are the only ones you can deal with.  As far as filing for civil remedy, that would be after the fact if BM refuses to amend her return at the request of the IRS.

I strongly recommend contacting the IRS.  Regardless of what anyone says, if you're persistent, you CAN reach a human if you keep at it long enough.  I've done it more than once and in 2 different states for vastly different issues and received more than sufficient assistance.  The first time I called, not only did I get a wonderful lady who literally walked me through the process I needed. but insisted I call her back if I ran into any more problems and gave me her extention number so that I could talk to her directly.  In the case with DH, the lady I spoke with was incredibly helpful and patient.

Regardless of how this turns out, you will still have to claim SD or you won't even get the process started.  It's not contempt until the IRS gets your return, realizes that BM already claimed SD, and then informs your DH and BM that they are now investigating because SD's SSN was filed on 2 returns.  And it all may be a moot point......BM will be contacted by the IRS, and it's very possible that she may 'fess up and file an amended return, especially if they warn her what the penalties will be.  Just make sure that you include a copy of the order that shows DH is entitled to claim SD.

Then if she refuses to amend and return the money, you have grounds for a civil suit and she can deal with the IRS AND the courts.

For anyone else with a potential situation like this, I will pass on exactly what the nice IRS lady told me:  File EARLY.  She was very emphatic about that.......

[MixedBag]

I'm with Kitty on this one.

The IRS will send her a letter probably towards the end of the calendar year, and then it's Merry Christmas to MOM!

I'm on the side of handling it through "another agency" if possible to stay out of family court.

Dad and Mom (if I remember right) are long distance too with jurisdiction being out of town for dad. 

[Ref]

Thanks guys!

I called the IRS and the agent said that all we need to do is file with them and a letter will go out to both our homes once the error is found asking for a return to be amended. As long as we have the docs in place that are needed, we should be fine. We should get the full refund and whatever adjustments needed will come later.

We will not take this to court. It would simply not be worth the money, time or aggravation.

[4honor]

BF should write a very civil letter with quotes directly from the court order in support of his position addressed to BM and sent certified. Make sure you keep a copy. It should go something like this:

[BLOCKQUOTE]
Dear Biomom;
In the course of filing my taxes electronically this year, I was notified that someone had already used Dear daughter's social security as a dependent. I am writing as a courtesy in the event you used DD as a dependent on your tax return. I will be filing manually  and presenting documentation in order to support my claim of DD as my dependent. If you have mistakenly used DD as a dependent for tax year 2008, please correct your filing with the IRS, as completion of my filing will trigger an investigation and may result in some fees or penalties.

As you can see by section 4, paragraph 2 of the original decree entitled, "IN re the Marriage of John Doe, Plaintiff and Jane Doesn't, Respondent" it clearly states that the father shall have the tax exemptions in even years, therefore I am entitled to claim DD for the year ending 2008.

I am not trying to be vindictive or interfere in your financial affairs. I felt it was fair (since I know this is coming) to make you aware so you could prepare financially. If you did not take this deduction, as I have assumed, please let me know so that we can discuss with DD the possibility that someone has committed identity fraud and has access to her social security number.

Sincerely,
Jon Doe

[/BLOCKQUOTE]
If you get a positive response, great! If not, you have attempted to act civilly, have addressed the possibility it was not necessarily BM, and you have clean hands. Should it come up in court, you have positioned yourself well.

[MixedBag]

Great suggestion 4honor -- their daughter in question just emancipated and finished high school.  BM has been a thorn in the situation like forever.

[Ref]

Thanks 4honor and Mixed. I don't think DH will be sending BM a letter of any sort. I think we would rather jump out a window at this point. After all of these years of BM flipping out over nothing, I can't imagine even the most civil and well-intentioned letter would cause anything but more issues. DH tried that route for 15 years only to be assaulted by her (verbally, not physically).

I do agree that if BM had a shred of reason, that would be the way to go. It is unfortunately not the case here.

[ksmarks]

I don't think we would send a letter either, just causes more "crap" as my husband would say.  If you have the legal paperwork to suport your claim I would just proceed as directed by the IRS.


Any chance that step daughter claimed herself?  If that is the case I can see this going down differently, which means dad still might end up paying.

Good Luck! And Congratulations!  Sounds like the child support part is over..... My husband is counting the days.....