Filing 8332

[Corduroy Frog]

"Dianne" comes to me to have her taxes filed.

"Jack claims Toddler in odd years, and I claim him in even years."

[me] "Did Jack give you an 8332?"

[Dianne]  "Oh no.  We sorta just agreed to that."

So we don't have an 8332 and we go ahead and file electronically without one.

My question:  Will the IRS hold up processing the return?  Researching to see whether "Jack" has claimed Toddler?

 

[jklcpa]

https://www.journalofaccountancy.com/issues/2019/sep/tax-claim-child-dependency-by-noncustodial-parents/

[DANRVAN]

On 5/8/2025 at 12:55 AM, Corduroy Frog said:

we don't have an 8332 and we go ahead and file electronically without one

You are filing an incomplete and inaccurate tax return.  Filing form 8332 (or similar statement)  for noncustodial parent is a requirement, not an option.

[Lion EA]

If your client is the custodial parent, per IRS rules, then she gives Form 8332 and does NOT receive it.

[DANRVAN]

8 hours ago, Lion EA said:

then she gives Form 8332

But the custodial parent is not required by IRS to provide 8332; that is strictly between the two parties or legal system.

[Lion EA]

Exactly. But the OP seemed to want a 8332 each year for the one claiming the dependency that year -- when it's the custodial parent who's qualified to claim the child for all purposes but can give the dependency via 8332 -- in the OP's scenario, every other year. The dependency can go back and forth, but the custodial parent is an IRS qualification and not due to a divorce decree. So who gives (or refuses to give) the 8332 doesn't change (unless the child's living situation changes). If his client is the custodial parent, she will never receive an 8332. She can choose to give an 8332 in odd years -- in the OP's scenario. If she's the non-custodial parent, she can request an 8332 from the custodial parent, again per the OP in even years, and hope her ex doesn't also claim the child in even years.

[DANRVAN]

28 minutes ago, Lion EA said:

If she's the non-custodial parent, she can request an 8332 from the custodial parent, again per the OP in even years, and hope her ex doesn't also claim the child in even years.

To clarify, if custodial parent signs 8332 and also claims the child, then IRS will disallow the claim by custodial parent and allow to noncustodial parent per the signed release.  

The noncustodial parent needs to be proactive and request the 8332 for not only the current year in part I, but also for future years in part II.

The noncustodial parent also needs to be aware that custodial parent can revoke for future years  by filing an additional 8332 and filling in part III.  In that case, the custodial parent must attach a copy of the 8332 as proof of the revocation.

[Lion EA]

Yes, my point exactly.

The OP has a client where NO Forms 8332 are used. This leaves his client at the mercy of her ex and open to a position that will take a lot of time working with the IRS to clear up/validate her return/receive her potential refund or confirm her balance due payment.

OP seems to want a 8332 each year, alternating which person signs/provides. This is not the way either. Identify the custodial parent first.

Your 2nd paragraph is a great solution. However, your 3rd paragraph shows why it's not a one & done. Maybe that's why OP wants to see an 8332 every year; however, it's even years only if his client is the noncustodial parent.

No matter what, he needs to identify the custodial parent first.

[me] "Did Jack give you an 8332?" might not be the next question to ask...

[DANRVAN]

52 minutes ago, Lion EA said:

No matter what, he needs to identify the custodial parent first.

I assumed OP already made that determination; and return was filed, or to be filed without 8332 (So we don't have an 8332 and we go ahead and file electronically without one.)

His question was: "Will the IRS hold up processing the return?  Researching to see whether "Jack" has claimed Toddler?"

Answer is, IRS does not track who custodial parent is from year to year.  They are not going to hold up the return while they research "to see whether "Jack" has claimed Toddler".

So even if the return is filed by non-custodial parent without 8332, the dependent will go to noncustodial parent if custodial parent has not claimed.

I know many of us have had to file an appeal for custodial parent when ex beat them to the punch and claimed dependents without permission.

[DANRVAN]

On 5/8/2025 at 12:55 AM, Corduroy Frog said:

So we don't have an 8332 and we go ahead and file electronically without one

And how did you answer form 8867?

[Gail in Virginia]

Most of the time my clients will tell me that they have joint custody.  And they usually do, in which case I know that it comes down to where the child spent the most nights for the dependency exemption.  But with no clearly defined "custodial" parent, deciding who should give whom an 8332 is not always clear.