Is it illegal and what can the parent do?

My question is regarding taxes and someone claiming a child that has NEVER lived with this person, on their taxes.





I have a friend who is just now starting to get a divorce from his wife. He went to file his taxes and someone, one of his wife's friends, claimed his child on her taxes. His wife never worked so she won't be filing for taxes and probably talked her friend into doing this for her, hoping to get some money out of it.





Isn't that illegal?? And what can this guy do because without the child credit he loses over $1000 of his return?!Is it illegal and what can the parent do?
Yes, that is illegal.


You're friend should report this lady to the IRS(or whatever tax collecting org).Is it illegal and what can the parent do?
He should go see the people at IRS and tell them his story. If he has proof that he supplied more than 1/2 the support for the child then no one else can claim them
If the child lived with him in 2007 for over half of the year, he should go ahead and claim the child on his return. He won't be able to efile - he'll have to mail it in. That will trigger an IRS investigation and the wife's friend will be busted for claiming the child illegally.
Yes, that's illegal, unless this other man paid for more than half of the child's expenses for the year, and the child lived with the man for more than half of the year.





He should talk to someone in his local IRS office. They will be able to tell him exactly what steps he needs to take.





You can also point him to the IRS website's page on how to report tax frauds
If your friend lived with the child for more than 6 months, then he should file and claim the child.





If your friend didn't live with the child for more than 6 months, then he has a BIG problem as he would need the mom to sign a form 8332 before he can claim the exemption and $1000 Child tax credit. If she signs, he claims by mailing in his return and the duplicate use of the child will be VERY OBVIOUS to the IRS.





If he needs that form and she won't sign, then all he can do is file the fraud form.





PS, the ';friend'; probably claimed the child was her nephew. The IRS routinely refuses to issue refunds based on ';nephew'; status until the purported custodial adult produces proof of legal relationship, residence and support.
It all depends. If his child lived with him for more than half the tax year, he can claim the child tax credit. If the child lived with an other person for more than half of the year, your friend can not claim it, but the person with whom the child lived can claim it. You might also check on www.irs.gov.
i would still file the child credit. Report the criminal, keep the money.





Just because they illegally claimed the child doesn't mean your friend can't.
He needs to file his return via paper (not via e-file) and claim his child. The IRS will subsequently ask both parties who claimed the child on their returns to verify their claims.
It is illegal if she didn't meet the tests for claiming the child... one of which is providing more than half the support, another being the relationship test.





this ';guy'; who will lose the child credit should file and claim the child... provided he meets the tests. IRS will deny it and then he can contact the IRS to get involved and get that child rustler.
yes its illegal. How did he find out, when he tried filing, and they told him? ...it happend to my aunt, and what happend here was they both filed the child as a dependent and then they investigated both claims.. im iffy on the details... he should find out from the irs themselves what to do in the situation.
No, it is not legal, but it sounds like you already knew that :)


What can he do? I don't know for sure. Call your local IRS building, I bet they will have an answer or two for you!!


Good luck!!!!