EIC Audit

[Black Bart]

Last time

I had one of these was in '01 and it sounds like IRS hasn't changed much. Took some time (started April/finished August) and doing like what you're working on, but they finally let my guy keep the EIC.

Taxea listed some good suggestions. Also might add to it the insurance policy on house and utility bills. Assume you have their SS cards -- if not get some duplicates. School records are best for kids, but sounds too young (don't know if pre-K accepts 3-yr. olds).

We got notarized statement from neighbors on each side of them (like this):

To Whom It May Concern:

This is to verify that I am well-acquainted with John Doe and I have personal knowledge that his daughter_________, grandson _________, and granddaughter_________ lived with him at his house on 1010 Main St. in Minneapolis, MN for the entire year of 2011.

___________________________ Date____________
William Goodneighbor

Don't know if you could pull it off in the big city, but my client lived here in rural Podunk Junction and the mailman (postal has good credibility) wrote a letter saying he confirmed from observation that kids one and two lived there with him.

I don't remember if he got IRS letters in the (nonsensical) sequence you're getting, but anyway just keep on sending stuff and there's a good chance you'll outlast 'em. Good luck.

[FEDUKE404]

Uphill climb

I would think the greatest burden would be to prove the daughter/her son and other grandchild did in fact reside in his residence for the required time frame.

After that, things could get dicey since it seems likely there was some "government money" arriving for some/all of the three offsprings of the parent. The existence of such could create several problems with the scenario you presented, primarily along the lines of allowable dependents to include any related "dependent of a dependent" issues.

Good luck!

FE

[Gary2]

Why isn't the 1 year old living with a parent?

[taxea]

Is daughter's driver's license at his address? Does the 3 year old go to preschool? Would any of the neighbors or friends be willing to sumit a statement? Does daughter have a phone in her name at his address? What about car registration?
Or call the IRS and ask what they they would accept as proof of occupancy by the daughter.

[zeros]

I have a client who is going through a paper audit focusing on the EIC. He claimed his 25 year old daughter (not a student) (income: $2500) and her son (age 2). He also claimed his granddaughter (age 2) from a son who doesn't live there. All three lived with him. IRS was asking for proof of whether he provided a home and also proof that they lived with him.

In a previous corresponce with them, I supplied his mortgage statement, repair bill, property tax statement to attempt to prove that he provided a home.

Also, provided birth certificates to prove that he was related to them.

Proving that they lived with him is a little more difficult. The daughter has 3 w-2's with his address. I believe I provided a couple of medical records that show each child with the same address as him.

He received a letter last week from them stating that they are working on it and would advise by July 2nd. In a letter received yesterday, it seems like they did not budge on the original charge back and disallowed, all 3 dependencies, child tax credit, EIC and also denied HOH. Nasty penalty also. I'm wondering if there is another determination letter coming, like the one mentioned on July 2nd?

Anyhow, we can appeal so was wondering if anybody has any good ideas as to what more information could be supplied?