cousin claimed my mom

What is the name of your state? Md
My mom, (who is 76) just got informed by her niece, that she has to pay $800 in 15 days or else she will be in trouble with the IRS, because my cousin (the neice) claimed my mom as an elderly aunt who lived with her with no income. First of all, my mom had income, my dads pension, and her own s.s. My cousin had no right to do this. My mom filed her own taxes and everything was fine. I think my cousin was just trying to get what she culd while my mom lived with her, and now that she got found out, she wants my mom to pay. My mom did live with her for almost 2 years, but with her income, she paid the electric bill, the food, the repairs to certain things in the house, etc.. She still has all the cancelled checks. Should my mom be worried? I think not. I appreciate any info. thanks..

[abezon]

Your mother has nothing to worry about. The big clue that Mom is fine is the fact that the demand for payment came from her neice, not from the IRS.

As far as the IRS is concerned, the neice claim your mother as a dependent & the IRS paid her a refund based on that fact. Then, your mother filed her return and claimed herself. The IRS took a quick look at mom's & cousin's finances and declared that your cousin did not provide more than 50% of your mom's support and disallowed your cousin's exemption. they then sent your cousin a letter demanding your cousin repay the part of her refund that was due to Mom's exemption, plus interest & penalties.

This problem is between the IRS & your cousin. Your mother is not involved until and unless the IRS sends *her* a letter asking for more information. However, she should gather her financial records from that tax year and keep them with her tax papers so she can find the necessary info should she need to prove that she supported herself.