Father and daughter claim dependent

[Beth]

I have a client who with her husband, supported her sister for 8 months of 2006. Sister (age 17) lived in clients home during entire period, and had little earned income.

Today, the efile rejected for Federal and was accepted in MN. A second state also rejected. Rejection is based on SS # submitted already on another return. We expected likely rejection, as the father of the client and her sister said he was claiming her whether they liked it or not.

So my questions are:

1. what type of statement should client include with a paper federal copy, which now needs to be filed

2. is MN likely to reject the return now down the road

Any other suggestions are appreciated.

[Dervis]

Claiming dependent

Just mail in the return claiming the sister. If she lived with them more than six months, she is their qualifying child and can be claimed. The IRS will eventually send letters to both TPs who claimed her, asking for substantiation. Your client can begin gathering documentation in the meantime, such as school records or medical records showing her address as their home.

[thomtax]

Agree with Dervis

This procedure is how it has worked with me. The IRS will begin an inquiry asking for items Dervis listed and then make their determination as to who will get the exemption.

Warning- this will not be a fast procedure as with electronic filing, since there will be mailings back and forth.

LT

[Bird Legs]

Also Agree

Had one last year and another this year already.
File a paper return. Have client gather all the abovementioned records. School, Medical, etc.

[jainen]

temporary absence from her main home

>>gather all the abovementioned records<<

The first sentence of the original post starts off wrong, talking about support. Support is NOT relevant. It has nothing to do with the exemption, although the client will naturally want to gather records about all it's costing. The records they need are ones that show a) the young woman actually lived in their home those eight months and b) her visit to her sister was not a temporary absence from her main home.