irs examination code reference 1242

This topic contains 2 replies, has 2 voices, and was last updated by  Candace the taxlady 1 year, 6 months ago.

  • Creator
    Topic
  • #1887 Reply

    modom
    Participant

    am self employed )operating without a business license) and I allow 2 of my friends to live in my house with 1 child each. they have lived with me all year and niether parent is filing taxes this year. I don’t charge either of them any money for rent, utilities or food etc. as they are both very close friends of mine. Now with that said, since the 2 children are under my roof I claimed them for the earned income credit. I have just received a letter from the irs requesting information to be submitted before I will receive my refund.
    information requested are as follows:
    1. EARNED INCOME CREDIT – FORM 886-H-EIC
    2. DEPENDENTS – FORM 886-H-DEP
    3. FILING STATUS – FORM 886-H-HOH
    4. SCHEDULE C – FORM 11652

    My question is… is this standard operating procedure for the irs review process? Do they normally ask for all this information to be submitted?

    I don’t even know where to start. I have receipts for payments from the entire year proving my income totalling just over 13K. the parents of the children will cooperate and write any letter I need. the problem is that I support these children by providing a roof for them, but I don’t have guardian rights nor do I want them. I am just helping out my friends.

    with the information I have provided do I need to be worried I will get in trouble for claiming my income which is, up til now, totally unreported and under the table in prior years.

    any help would be appreciated.

    thanks
    Reply

    Report this comment

  • Author
    Replies
  • #16833 Reply

    Candace the taxlady

    THAT IS NOT TRUE!!! You can get earned income credit for dependents who are not related to you that is step children are eligible. You just have to prove that you took care of them.

  • #16599 Reply

    Kimberly Overstreet

    If the children are not related to you then you cannot claim Earned Income Credit.

Reply To: irs examination code reference 1242
Your information:





<a href="" title="" rel="" target=""> <blockquote cite=""> <code> <pre> <em> <strong> <del datetime=""> <ul> <ol start=""> <li> <img src="" border="" alt="" height="" width="">