My Client got Form 3949 A Information referral from IRS

My client is being claiming his two kids. One of them is now a college student age 20. She made less than $5000, but she did her taxes and claim her self. My client got a letter from the IRS regarding that issue, including form 3949 A. This is the first time one of my clients gets this form, so I am not familiar with it. I advised him and told him that he qualifies to claim her daughter, because she is not making enough to provide more than 50% of her own support, that she should amend her taxes and claim no exemption. Well, he is mad and does not want to deal with her and want me to amend his. My question is, should I amend his taxes or just complete form 3949 A or both? Also, why is he getting that form? normally they just ask to proof that the child is a qualifying child.

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5 Replies

TAXOH

Accountant Community AllStar

03/01/10 6:05pm PST

I've never seen someone get that form because of that situation before. I guess you just need to do what your client wants you to do and amend his return.

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peterhawaii

Accountant Community AllStar

03/01/10 9:05pm PST

Form 3949 A is to report suspected fraud. Why would any parent want to report their child as committing fraud.

Many kids away at college make this innocent mistake, and the parents help their child by amending the child's tax return. These kids have no idea that to take the exemption they must provide over 50% of their own support. It should not take a genius of a parent, to be able to explain this to the child. If the dad needs help amending the return, he could pay a tax preparer to do the amendment. Once the parent is sure the child's return is amended, he should be able to phone or write an explanation which the IRS will accept.

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Fatima

Contributor

03/02/10 9:32am PST

Thanks Peterhawaii.... I didn't know about that form, that was my major concern. I agree with you!!

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Mt Juliet CPA

Accountant Community AllStar

03/02/10 9:45am PST

The solution

I have had this situation with Form 3949 A a few occasions and the biggest reason it happens is that the Child Claims them selves not realizing that the parent is entitled to the exemption. It was normally easily resolved by having the child file an amended return with an explanation, then the IRS allowed processing the parents return

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Fatima

Contributor

03/02/10 9:57am PST