EIC-Auditing Return & Delaying Refund

[zeros]

Client received letter regarding the EIC claimed on his return. Filing as HOH and claiming two grandchildren that lived with him all year. One question has to do with verifying relationship. What is the acceptable proof that they are his grandchildren? They are both 2 years old so have no school documents. Need to show that the children lived with him for more than half of 2011.

[okie1tax]

EIC Audit

Relationship - birth certificates
Residence - medical records, DHS or similiar records, possibly sworn letters from neighbors not related

[zeros]

Birth Certificates?

Relationship - birth certificates
Residence - medical records, DHS or similiar records, possibly sworn letters from neighbors not related

How does birth certificates prove that they are related seeing he is the grandfather?

[taxmandan]

How does birth certificates prove that they are related seeing he is the grandfather?

He provides BC for his child, the parent of said kids, that shows him as father and BC for the grandkids showing his child as parent.

[Larmil]

How does birth certificates prove that they are related seeing he is the grandfather?

The kids have birth certificates naming the parents. The parents have birth cert's naming their parents. Been there, done that.

[powerage]

School records will work.

[okie1tax]

School Records

School records at age 2?

[Gene V]

Show them the diaper receipts

[BP.]

Find out proof document requirements here:

http://www.eitc.irs.gov/public/site_files/f886_h-EIC_2011.pdf

[powerage]

School records at age 2?

I read right over that.

[Koss]

Proof of Residence

Medical records should show where the child lives.

They may also show that the client--the grandparent who is claiming the child as a dependent--is the person who accepted legal responsibility for payment for the medical care.

Those documents may even show that the child is covered by the grandparent's medical insurance policy.

Those issues may help a little bit, but technically they don't really matter. Under the rules for a qualifying child, it doesn't matter who is paying the kid's doctor bills, or how the kid is getting covered under a medical insurance plan. What matters is where the kid lives, and the fact that the kid is not providing more than half of his own support.

BMK