Drama with Claiming another person's kid on taxes?

No rights. Both did something illegal. Just because a parent isn't claiming a child doesn't mean someone else can, and a parent can't give permission. Your friend should immediately amend, removing the child from her return and paying back any money she got for claiming the child illegally orr settting up a payment plan to pay it back. Otherwise when. the IRS finds out, either because the mom reports it or some other way, both of them will be in trouble. .

Both parties committed tax fraud. Its completely illegal to just "let" someone claim your children. Each of them will have rights such as the right to remain silent, the right to due process, the right to an attorney and all the other rights which our constitution guarantees for people who are accused of crimes.

Your friend should immediately file an amendment removing the children from her return. Include payment to repay the excess refund and be prepared to pay additional penalties and interest charges (The IRS will mail a statement outlining these charges).

If your friend cannot afford to repay the full debt then amend anyway and set up a payment plan.

If your friend fraudulently claimed the Earned Income Credit she can expect to be banned from claiming it again for anywhere from 2-10 years. Admitting her mistake willingly by filing an amendment and paying her debt will increase her chances of it being a 2 year ban and not a 10 year ban.

Most of the criminal guilt falls on the friend who actually submitted a fraudulent claim. She is the one who knowingly put false information on her tax forms and signed the forms to certify that they were accurate even though she knew full well they weren't. However the parent of the children involved is also guilty as an accomplice because she willingly gave the necessary information knowing that it would be used to commit fraud (and apparently having the expectation of financial compensation).

It sounds like both the friend and the mother will be in trouble. You can't "let" someone claim your child, either they are entitled to or they aren't.

Since it sounds like the person didn't live with the child (and thus isn't eligible at all), but listed them as a niece or nephew to claim EIC, both the claimant and the parent will be busted and barred from claiming EIC based on any child for 10 years.

this is all illegal, can't be done

first of all the eligibility to claim a child, any child is NOT for someone's neighbor and is not something that the bio parents 'allows' or gives away

if she let this person claim the child and she didn't get anything out of it at least she probably won't go to jail as the person who did claim the child, might

1. You cannot "allow" someone to claim your kid. They either qualify to claim them or they do not.

2. To "allow" this is tax fraud, for both parties.

3. If the person DOES claim the child, they owe the mother nothing.

4. If she reports the friend, she also gets in trouble for fraud. They both have the right to be assessed penalties, etc for tax fraud, which includes being banned from EIC for 10 years.

It does not matter how she got the info. She has no right to claim the child. She does have the right to a fair trial if the government decides to send her to prison over this. She doesn't even have that right if they decide to impose only administrative penalties.

Neither one has any rights. It's called tax fraud. The "friend" that claimed the child illegally should amend her return immediately and be prepared to pay back her ill gotten gains. BTW if she claimed EIC illegally, she could be barred from claiming it for 5 years. STUPID!!!

The one who claimed the child on taxes but did not actually qualify to claim the child is guilty of tax fraud. If the mom did provide the info willingly, she is guilty of collusion in the fraud, and if she reports the friend she risks jail too. The friend needs to file an amended return for last year, removing the child from the return, and take whatever penalties or added tax burden she rightfully owes. The mom can then file an amended return adding the child on. They can both hope the IRS does not still investigate or prosecute for fraud.

You can "let" someone claim your child, either they are entitled to or they aren't.

If the friend had no right to claim the child, she had no right to claim the child even if the mother gave her the information. But obviously, the mother gave your friend the information which is not cool!