INCOME TAX AUDIT

[alanacamm]

I am 28 years old. I got married in 1998 to a man who had already had a child from a previous relationship. He has had custody of his daughter since she was born in 1991. In 1996 her mother had a job and decided to claim their daughter and so did my husband.
In 1997 my husband received audit papers demanding he provide the IRS with proof that he provided half of the support for his daughter.
We sent court documents,utility bills, tuition statements for school,etc. and they still won't give him his money, they owe him over 5,000.00 and we would like to get this resolved.
In 1999 I received papers that I was getting audited. to proof that I have a daughter. We had a daughter together in 1995 and only I have been claiming her no one else has, so I sent them everything they requested and that doesn't seem to be enough. How can I have this matter resolved as quickly as possible without having to go through all the hassel?

 

[wowie]

I am not an attorney and not a CPA

Wow! Isn't the IRS fun?? The good thing for you to know is that if they do owe you money they will pay you back with interest. I know that is small peanuts comared to not having the money.

Hmmmmm. . . I once heard of a guy (don't know if this is true) who wasn't allowed his deduction for his son. He sent the IRS a list of bills (tuition etc) that he had paid for the son. He requested the money back for those bills since he really wasn't his son according to the IRS. . . he got to use the deduction

Okay, I will try to make this short. . .In a divided parent case, both parents can actually get a similar deduction for the child. If the daughter is physically living with you and you are providing the majority of her support then your husband could get this solved in a gentlemanly fashion while still keeping the majority of the refund. He could file as head of household instead of claiming her as a dependant. He would still list her as a dependant, he just wouldn't get the deduction. This will lower you refund, but less money than expected is better than no money. OR the girl's mother could file this way and your hubby could still claim the deduction. Head of houshold only works of you are providing greater than 50% support for someone.

As for your daughter. . . well, the IRS doesn't think that you guys pay for children huh? Is there any reason why they would think that she doesn't live with you? Did you file child support papers at one point? Maybe you typed the SSN incorrectly on the form or didn't put one at all?

Dealing with the IRS takes quite a bit of patience and knowledge. If I were in your situation I would contact a lawyer and a CPA. The lawyer could discuss your rights and how to protect your future refunds. The CPA could help you file your current returns as well as advise you on future returns. I would grant both of them power of attorney for the years you are disputing so that they can consult the IRS for you.

As for the mother. . .I would ask the attorney to help you draw up a strict agreement as to when each of them is to claim her as an exemption. . .so this mess doesn't happen again.

Sorry for the long reply

 

[crager34]

what section?

Section 4403 of the IRS code REQUIRES bookmakers to keep records. Section 5114 REQUIRES distillers - Sections 5722 & 5741 REQUIRES tobacco manufacturers to keep records. What section REQUIRES one to keep records for the purposes of of Income Tax? Doesn't the IRS reform act of 98 (i think thats the year) put the burdon of proof on the IRS?