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IRS matching on filing status

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    #1

    IRS matching on filing status

    Young client dropped off info and said he will be filing single as he was separated since Oct 19 and that wife will be claiming child.

    Obviously, I'm not going to prepare a single status return for him. In 2018 she earned about 15K, so guessing she already filed as either single or HOH and received several thousand EIC.

    If I correctly file his return as MFS is there an auto matching within IRS computers, in which she will receive a letter asking to verify the claim on her return? Basically I'm asking it's certain she will be asked or if it would just be a chance?
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    #2
    A married couple generally files as Married Filing Jointly or Married Filing Separately. Under the correct circumstances, one or both of them can file as Head of Household. If I am reading your post correctly, as you described the couple, they shared the same home until October 19 (not really what you stated, but I am trying to learn how to read between the lines). If they lived together any part of the last six months of the year, then neither taxpayer may file as anything except Married Filing Jointly or Married Filing Separately. If they lived apart for the entire last six months of the year or more then it may be possible for one or both to claim Head of Household if they have a properly qualifying individual living in the home that they principally supported.

    Since your client is going to file as Married Filing Separately (and will list the spouse's Social Security Number), this will identify a problem with the wife's tax return if she filed as Single, but it will not necessarily cause an issue if the wife filed as Head of Household. Why not (since I indicated that she is not eligible)? Since the IRS has no way of knowing what the actual situation is, they do not know if they lived apart the whole year, a small part of the year, or the majority of the year and they likewise have no idea whether they were together for any part of the last six months. In my very limited experience with these situations, the issue is more likely that there will be a question of who claimed which dependent.

    I hope this helps.
    Doug

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      #3
      No, there is no auto-matching that would automatically trigger an IRS notice. That is because HOH and MFS is a perfectly legitimate combination in many cases (they didn't live together in the last 6 months).

      Comment

        #4
        Originally posted by TaxGuyBill View Post
        No, there is no auto-matching that would automatically trigger an IRS notice. That is because HOH and MFS is a perfectly legitimate combination in many cases (they didn't live together in the last 6 months).
        But OP said the other spouse might have filed single (it's unknown at this point).

        I don't understand how what the IRS will or won't do as far as inquiries to some other taxpayer has to do with filing this taxpayer's return.
        Or, to answer the question posed "Basically I'm asking it's certain she will be asked or if it would just be a chance?" - The answer is, Yes.
        "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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          #5
          You right, I missed the "Single" part. If other spouse filed as Single, yes, she will likely get a notice. But if she filed as Head of Household, no, she won't receive a notice.

          But as Rapid Robert pointed out, why do you care? It should not be your concern or your client's concern if the other spouse filed incorrectly.

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            #6
            File your return correctly and let the chips fall where they may. Unlikely other party is going to disclose how they filed. have run into this issue more than once.

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              #7
              Its been a long time since I had one of these. The rightful claimer (my client) had the dependents rejected, as mother claimed them first and got all the benefits, EIC, etc. The children did not even live with mother and she contributed no support. When all was said and done, and all the paperwork / documentation of where the children did live was submitted, the IRS still did not allow them.

              Comment

                #8
                Originally posted by TaxGuyBill View Post
                You right, I missed the "Single" part. If other spouse filed as Single, yes, she will likely get a notice. But if she filed as Head of Household, no, she won't receive a notice.

                But as Rapid Robert pointed out, why do you care? It should not be your concern or your client's concern if the other spouse filed incorrectly.
                Guess because I am concerned about my clients. They have a child together and I don't want his return to cause issues between them that would affect the child. If her income was for same in 2019 as 2018, she would have received several thousand of EIC. If she gets a letter than she needs to pay it back.... Let's just say from the couple times I've met her a would label her a piece of work.
                I won't prepare the return any other way than as MFS, but if he decides to self file his return as Single to keep the peace, that is his decision.

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