EIC rejection, knew it was coming

[ILLMAS]

Boyfriend/Girlfriend are my clients, live together and have kids but they are not married, our state does not recognize common law unions. In the past the mother will claim the kids but in 2013, she quit work to earn a degree, so the boyfriend will be claiming the kids in 2013. I told the client there was a chance they might reject his return because this was the first year he was claiming them and the IRS has no previous record on you claiming the kids. Today I see his return was rejected and the error message is that I need to file form 8862, I have never filed the form before so I wanted to see if I include the form this will resolve the issue. But my question was the EIC was never disallowed before, the return simply hasn't been accepted for efile. Can someone assist me on this matter.

Thanks

MAS

[Jack from Ohio]

Boyfriend/Girlfriend are my clients, live together and have kids but they are not married, our state does not recognize common law unions. In the past the mother will claim the kids but in 2013, she quit work to earn a degree, so the boyfriend will be claiming the kids in 2013. I told the client there was a chance they might reject his return because this was the first year he was claiming them and the IRS has no previous record on you claiming the kids. Today I see his return was rejected and the error message is that I need to file form 8862, I have never filed the form before so I wanted to see if I include the form this will resolve the issue. But my question was the EIC was never disallowed before, the return simply hasn't been accepted for efile. Can someone assist me on this matter.

Thanks

MAS

Form 8862 is required when the IRS has had them repay EIC in the past. Tread carefully!!! They are not telling you everything.

[Pacun]

File the form and there is a 60% chance that the IRS will accept it.

[David1980]

File the form and there is a 60% chance that the IRS will accept it.

But like Jack says, they had a disallowance in the prior year. How can you complete the 8862 without knowing what the disallowance is? And is the taxpayer even entitled to claim EIC? For example, what if boyfriend isn't really the father and was disallowed in a prior year for claiming kids that are not his own. If that's the case adding 8862 is the wrong solution. But without knowing why he was disallowed EIC in a prior year it's impossible to say whether the same is true or not this year.

[bertrans]

Form 8862 is required when the IRS has had them repay EIC in the past. Tread carefully!!! They are not telling you everything.

Form 8862 has one use: it is issued to a TP who, at some point in the past, had his return examined (audited) and the EIC was removed by deficiency procedures. TPs in that situation have to 'recertify' by filing that form for at least the next 2 years. Since the boyfriend got the 8862, HE is the one who got audited - and is staying mum. Look out.

[ILLMAS]

I think they should make a realty show on tax preparers and all the crap they have to go through. Called TP and I get this from him, Oh no, I have never claimed my children, this is the first time and I don't know why this is happening, Me: I want for you to tell me the truth, have you ever had any issues with the IRS? TP: I have never had any issues before because I have never claimed my kids, but I did have a problem when I tried claiming my brothers kids and I had to pay money back

[Lion EA]

Do you prepare taxes for Jerry Springer's TV guests?!

[NECPA in NEBRASKA]

That is the funniest thing that I've heard all day.

[KINGCHUCK1971]

Your client got reviewed before and didn't prove his case to the IRS satisfactorily before. So without a doubt the IRS is going to ask him to prove his case again. It's going to put a delay on his processing.