$700 Mistake!

[SueBaby]

What do you do when a divorced couple comes in separately and has 1 child and one has the child for EIC and the other for a dependent?

I made the mistake with the ex wife using both and when he came in much later his would not go through and looked back on hers and found the mistake. So now I am amended hers and she owes the $700 and he has to mail his.
They are both mad but both were mad when they came in to do taxes and talked about the other one so severly till I could not ever think. (She was a little tipsy herself)

Which of course my fault on it but what would you do about this situation? Sure can't get them to be happy about nothing at this point. This only makes them madder.

[JohnH]

You know, when there's any ambiguity about a situation or when there's some sort of disagreement, I just tell them we need to file an extension. If they can't wait, then they are free to go somewhere else. If they can wait, then I have time to think through all the ramifications at my leisure. Either way I get to do things my way - I just don't care to take on every personal problem the clients create in their relationships & let it stampede me into doing something rash.

[BP.]

What do you do when a divorced couple comes in separately and has 1 child and one has the child for EIC and the other for a dependent?

I would ask dad, the non-custodial parent who wants to claim the child's dependency exemption, for a signed 8332 from mom, the custodial parent. If mom doesn't want to release the dependent to the non-custodial parent, then you really didn't make a mistake.

[taxmom34]

it is possible that mom , as HH can get EIC and not claim child as dependent,

[RitaB]

I would amend free

I would amend hers free, but I would charge for both original returns. This is an easy mistake to make, and if you apologize and make it right, you've done your job. Document like crazy for your files for both clients, so everything goes smoother next time. Don't worry about it - things happen. Especially with divorced and/or drunk clients. If they fire you, so be it; somebody more appreciative will take their place.

[SueBaby]

it is possible that mom , as HH can get EIC and not claim child as dependent,

Thats what I was going to do but her being so loud and hateful toward her husband and a little drunk was hard to work and being right on hers.

Yes, the amendment was free and now HIS is free because he has to mail his and it was my mistake and letting it go for her as a dependent messed his up.

I have never seen so many divorced couples as I have this year. They want to still come to me as separate returns and sometimes yes it is confussing when they want to separate the kids too. PLUS they hate one another which makes it even worse on me.

People like that I really want to go somewhere else; have too many other nice people to work on.

[spencer]

I agree with

RitaB. Mistakes involving divorced parents and dependents are easy to make. Don't be hard on yourself. Don't dwell on it. Move on.

[AJsTax]

SueBaby,

I don't know your situation as far as licensing, etc and none of our business, but you should really consider getting a release from both parties acknowledging that they know you are representing the other and there is possible conflict of interest just to CYA. That way they can not come back on you for favortism and if you are a 230 practioner it is required.

[SueBaby]

I don't know your situation as far as licensing, etc and none of our business, but you should really consider getting a release from both parties acknowledging that they know you are representing the other and there is possible conflict of interest just to CYA. That way they can not come back on you for favortism and if you are a 230 practioner it is required.

yes that is what I have done. I have too many separated couples that come here and believe me it can be very nerve racking at times.

[veritas]

Pick one client

and cut the other one loose.

[Lion]

Fire one...

Fire the client you like working with the least, the drunk or the cheaper return or any reason at all. If you keep the non-custodial parent, make sure you get the signed 8332 each and every year. Charge full price or better for the original returns. Give her the amendment free.