What is the penalty for illegally claiming someone as a dependent?

Civil Penalties

If the IRS concludes that you knowingly claimed a false dependent, they can assess a civil penalty of 20% of your understood tax. However, if the IRS believes that you have committed fraud on your false deduction, it can assess a penalty of 75% to your understood tax.

What do I do if someone else claims my dependent?

If someone else claimed your child inappropriately, and if they file first, your return will be rejected if e-filed. You would then need to file a return on paper, claiming the child as appropriate. The IRS will process your return and send you your refund, in the normal time.

Who do I contact about someone claiming my child on taxes?

800.829.1040
To learn who and when someone can claim a child on their tax returns, contact the IRS at 800.829. 1040 or IRS.gov.

Can you stop someone from claiming your child on taxes?

Neither you nor the IRS can stop someone from filing a tax return with your child as a dependent.

What happens when you report someone to the IRS?

This includes criminal fines, civil forfeitures, and violations of reporting requirements. In general, the IRS will pay an award of at least 15 percent, but not more than 30 percent of the proceeds collected attributable to the information submitted by the whistleblower.

What proof does the IRS need to claim a dependent?

The dependent’s birth certificate, and if needed, the birth and marriage certificates of any individuals, including yourself, that prove the dependent is related to you. For an adopted dependent, send an adoption decree or proof the child was lawfully placed with you or someone related to you for legal adoption.

What can you do if someone falsely claimed your child?

Answer when the IRS contacts you

You may receive a letter (CP87A) from us, stating your child was claimed on another return. It will explain what to do, either file an amended return or do nothing. The other person who claimed the dependent will get the same letter.

What is a false dependent?

IRS dependent fraud occurs when you knowingly claim someone as a dependent on your federal income tax return who does not qualify for that designation. People commit dependent fraud to reduce their taxes, which makes it a form of tax evasion. Tax evasion is a felony with potentially severe criminal penalties.

What happens if the non custodial parent claims child on taxes?

In the case of a noncustodial parent claiming a child on their taxes without permission, you or your spouse may be required to file an amended return.