irs examination code reference 1242

[Anonymous]

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
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[Anita L Corey]

I have my 2 grandchildren living with me for the past 4 years. I have claimed them every year as i am supporting and caring for them. I have mailed in their birth certificates and letter from our church. It has been 2 weeks since then and i have heard nothing. What is going on?

[David Owens]

What is the 1242 code

[Mary Gray]

Claimed my son he is grown they gave me a partial refund and have a code od 1242 and its been 2months now dont undetstand?

[Mary Gray]

Claimed my son he is grown they gave me a partial refund and have a code od 1242 and its been 2months now dont undetstand?

[Mary Gray]

I claimed my son who lives with me hes 28 hes bopolar he dosent work my tax is saying review thats the only thing different on my tax could this be a problem its been almost six weeks and stilll no paperwork for additional information is that a problem

[Mary Gray]

I claimed my son who lives with me hes 28 hes bopolar he dosent work my tax is saying review thats the only thing different on my tax could this be a problem its been almost six weeks and stilll no paperwork for additional information is that a problem

[Lovie Jacox]

I received 1242 code what does it mean

[candy]

I got code 1242 but they have the wrong address on my return so who has the address or fax number!

[candy]

What is the fax or phone # to call scout 1242 or where to send your paper work

[Orielle Murphy]

I recieved reference code…1242 on my tax return…what does tht mean i claimed the same dependents as last year.so why am i gettin this code.

[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.

[Kimberly Overstreet]

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

[Author]

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