CP87A Notice for dependency exemption

[Jesse]

Exemption battle between divorced couple. Client came in this AM w/ a notice from the IRS that states:

"Compare the Social Security Number(s) on this letter with the Social Security card of each person claimed as a dependent on your 2005 Tax Return. Then, please follow the dircections below.

IF: The Social Security Numbers do not match - You are entitled to claim an exemption and an EIC for that dependent.

IF: The Social Securty Numbers match - You are NOT entitled to claim an exemption or an EIC for that dependent. Correct your tax return by sendin us an amended tax return."

My client is the custodial parent and all other requirements for dependency exemption are met. Why would the IRS send a notice to state my client is in the wrong in claiming a dependency exemption for the children, because the Social Security numbers claimed DO match the Social Security Numbers on the letter?

The other parent would have had to file a paper return as my client efiled and the SS#'s numbers would have been duplicated and the return rejected. In paper filing if the noncustodial parent sent a letter in defense to say they were entitled to the exemptions would that have initiated this notice?

[Bird Legs]

Dependent

It is now up to you to prove you are entitled to the dependency. School records showing
residency. Copy of medical bills, etc.
A letter will have to be written to the IRS in response to the notice stating that the
individual lived with you and attach copies of the above mentioned documents.

[fliszt]

The way

Bird Legs described is one way to handle the notice. Personally, I like to have the client sign a POA and then get on the phone and call the number listed on the notice. They'll ask you if you have power of attorney and you say yes I have one in front of me and would you like me to fax it to you. The agent will then give you a fax number and away you go. I find it much easier to talk to an agent rather than write a letter. This identical situation occurred with my daughter. The agent on the phone cleared everything up and said he would send a notice to the father disallowing his claim.
Hope this helps you.
Larry M

[Unregistered]

I received the same form letter (CP87A) because my 21 year old college student son filed (and did not take the exemption) and I also filed claiming him as a dependent. I called the IRS and they seemed clueless. What do I need to do to clear this up?

[ChEAr$]

IRS goofed

And has admitted it. Many thousands of these incorrectly worded CP87A notices
got mailed out to taxpayers. In the two blocks on the back, the rest of each sentence
was omitted, giving a false impression.

the upshot is this: IRS position has not changed and these notices should have read the
same as the old letters. (which reminds me of the old saying: if it ain't broke, don't fix
it.) But somebody did "fix" it, trying to streamline and re write the letter.

So, ignore the letter just as we used to. This is not to say that somewhere down the line IRS will not send out notices to each claimant wanting proof and escalating the issue.

ChEAr$,
Harlan Lunsford, EA n LA

[Skate1968]

Thanks

Thanks very much to everyone who contributed to this thread. Good to know.

[Jesse]

Follow up

Does the IRS follow up on these notices? These notices are sent when two (or more) taxpayers claim the same social security number on a tax return, one to each person that claimed the number.

I was talking to a fellow preparer and he said this is a scare tactic with the thought that the person in error will correct the return, but in fact that IRS stops with this letter - no follow up if no one responds to the notice. Anyone know if this is true?

[ChEAr$]

I kinda suspect

that using said letter as a scare tactic is correct; always has been in the past.

BUT, my conversation with the badge # xxxxxxxx in Memphis last week ended
with her saying words to the effect that "'that doesn't mean that maybe next year
each taxpayer won't get a questionnair."

And so it goes. We'll see.

I hope they do actually.

Holiday ChEAr$,
Harlan Lunsford, EA n LA