Dependent SSN ID Theft Possible

[geekgirldany]

Possible theft of Dependent SSN. Efile reject saying he had already been claimed on Form 2441.
Client is divorce and is possible ex took the child as a dependent. Ex said she tried to take the dependent but got a error saying the number was already use.

So either Ex did take the dependent and will not tell it or it is ID Theft.

Should the tax return just be mailed in and wait for a letter from the IRS?

Then if the ex holds to her story, do a ID Theft Affidavit for the child?

[Y2KEA]

Probably not DEP ID theft. Spouse/RDP/SO/whoever has claimed DEP
Mail in return claiming dependent.
TP will get refund.
Year or so later TP and other claimant will get letter from IRS saying someone else also claimed dependent.
Letter will include 1040X form for TP to submit in case they should not have claimed dependent.
TP & other claimant will not respond.
IRS will do nothing as usual.
Tax fraud will continue as always.

[FEDUKE404]

Not always ID theft situation

Probably not DEP ID theft. Spouse/RDP/SO/whoever has claimed DEP
Mail in return claiming dependent.
TP will get refund.
Year or so later TP and other claimant will get letter from IRS saying someone else also claimed dependent.
Letter will include 1040X form for TP to submit in case they should not have claimed dependent.
TP & other claimant will not respond.
IRS will do nothing as usual.
Tax fraud will continue as always.

Y2KEA nailed it.

There is a significant difference between genuine "ID Theft" (and hence need for Form 14039 affidavit) and the "usual" someone (ex-spouse, dependent, other relative) erroneously using a SSN on a tax return.

(It was also interesting, from the original post, that the "error" was using the SSN on a Form 2441. . .and not the usual "claimed as a dependent." Perhaps someone simply does not understand the rules for qualifying person for Form 2441 expenses? ? )

To automatically file a Form 14039 and required supporting documents is somewhat akin to firing a cannon at a mosquito.

File the paper return, let the IRS sort things out (they will be slow), and then if the TP has other indications of a true ID theft situation (new charge accounts/loans/whatever) then it is time to consider a Form 14039.

FE

[geekgirldany]

Thank you both for responding.

My gut tells me ex did claim the child. Again as you said strange the "claimed dependent" error did not come first but the Form 2441. Wonder if he claimed dependent care but not claim as dependent?? Not sure.

I appreciate the breakdown on how the IRS would handle it as I've never had this situation before or it has been so long I do not remember.

[David1980]

Is the ex the custodial parent?

[geekgirldany]

No, the child spent more nights with my client than the ex. End of 2014, divorce was final... but they lived together until Aug. The child then was living with my client fulltime and I am sure there was some visitations with ex.
I believe she would win out on the custodial parent.