I first spoke with Teresa in July of 2019. She contacted TaxAudit because the IRS wasn’t releasing her $7,400 tax refund and instead wanted her to prove that all of the dependents she had claimed on her return belonged to her. This is a common situation we see here at TaxAudit. A taxpayer claims Head of Household with at least one dependent to be able to claim a refund for the Earned Income Credit and Child Tax Credit. The IRS just wants to make sure that the taxpayer qualifies for the credit.
Teresa’s situation was unique. Teresa’s sister had two children and had been deemed unfit by the court. Teresa had stepped up to become the parent/guardian for Mary and Beth. Teresa had just adopted Mary, and she was appointed by the court to serve as guardian to Beth, Mary’s older sister. In addition, Teresa was fostering two boys, Peter and Paul. To say the documentation was complex would be an understatement.
We gathered all of the court documentation to prove the adoption, the guardianship, and the placement in Teresa’s home for the foster children. In August we sent a complete response package off to the IRS.
In November, Teresa received a reply from the IRS. They sent a no change letter. This meant that the IRS would release her $7,400 refund to her just in time for Christmas shopping. Teresa was elated to know that she was getting the refund she deserved. Teresa said she will never not get TaxAudit protection.
**Some names and identifying details have been changed to protect the privacy of the individuals.
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