Amend to take oneself off as dependent

[Jesse]

New client has father that lives with him. Client provides 100% of the cost of keeping up the home and pays over 1/2 the cost of father's support. The father would be a qualifying dependent of this client and also would qualify client to file as head of household.

We can go back and amend 2005, 2006 and 2007 for this client.

The father would not have had to file for any of these years, as his only source of income was social security, however, each year he went down to the local community center and VITA filed a return for him.

So my question is, do I need to do an amendment for the father for each of these years to take himself off as his own dependent?

Or can I amend only the clients to add the father and change from single to Head of household?

[solomon]

Since client's father claimed his own exemption without any tax benefit, I don/t see why the father's returns would need to be amended.

[WhiteOleander]

Since client's father claimed his own exemption without any tax benefit, I don/t see why the father's returns would need to be amended.

That's what I was thinking. You could always amend if the IRS writes and says the exemption is claimed. Might save alot of unnecessary work.

[Larmil]

That's what I was thinking. You could always amend if the IRS writes and says the exemption is claimed. Might save alot of unnecessary work.

Watch the statute of limitations.

[JohnH]

Now that's an interesting insight, Larmil.

I take it that you are suggesting that IRS could (for example) raise the question of why the taxpayer claimed the father on the 2005 return after April 15 of this year. In that case the taxpayer would be barred from claiming the father because the father claimed himself on the "no tax due" return, but the father would be barred from amending his own return and not claiming his personal exemption due to the SOL.

_______________________
Give a man a fish and he will eat for a day. Teach a man to fish and for the rest of his life you can sell him fancy fishing gear.

[Larmil]

Now that's an interesting insight, Larmil.

I take it that you are suggesting that IRS could (for example) raise the question of why the taxpayer claimed the father on the 2005 return after April 15 of this year. In that case the taxpayer would be barred from claiming the father because the father claimed himself on the "no tax due" return, but the father would be barred from amending his own return and not claiming his personal exemption due to the SOL.

_______________________
Give a man a fish and he will eat for a day. Teach a man to fish and for the rest of his life you can sell him fancy fishing gear.

They COULD do that. The decision should be made whether worth amending in light of that.

[S T]

Amended Returns

I have had to do this with dependent children, that filed their own returns, claiming their own dependency exemption, no tax benefit either which way on the child's return, but we received a letter from the IRS, stating that the same Social Security # appeared on two different returns.

I would probably file the amended at least for 2005 since the SOL is close to expiring. Then address 2006 after tax season.

Sandy

[Jesse]

Thanks for the replies - they're done!