Catherine Posted October 12, 2011 Report Share Posted October 12, 2011 Problem for 2010 tax year. Client and spouse -- went on extension. Filed by paper in May, as they bought a house and applied for the FTHB credit. Turns out spouse is considered a non-resident alien or illegal alien or something (not known to me at the time; I thought spouse was here legally as they've been married for several years). So FTHB credit got dis-allowed. HOWEVER -- house and mortgage are in client's name only. Can we RE-file before the 17th as MFS and have it treated as the initial (if corrected) filing? I seem to have seen this before, here, but on quick search can't find details. Also - if we CAN do this, do we file 1040X or "just" a new set of 1040's (one each)? Would appreciate a quick answer as this would need to be sandwiched in amongst all the other last-minute-here's-the-info-you-asked-for-in-March returns in the queue. TIA, Catherine Quote Link to comment Share on other sites More sharing options...
Catherine Posted October 12, 2011 Author Report Share Posted October 12, 2011 More twists, courtesy of paperwork from client. Rejection of FTHB credit came via Form 4549, Examination changes. First I heard of examination, as well. How does this change the situation? Quote Link to comment Share on other sites More sharing options...
jainen Posted October 12, 2011 Report Share Posted October 12, 2011 >>Form 4549<< That is the examination report for "agreed" changes! As a minimum, you should immediately file an appeal. It's a bit Big Brotherly that tax returns are being cross-checked with immigration files, but that's life in the 21st century. Nevertheless, illegal aliens have to follow the same rules. If they are in this country for a certain number of days, they meet the Substantial Presence test and are treated as residents. File the appeal and work on it after the 17th. You can't change to MFS after the due date of the original return. Quote Link to comment Share on other sites More sharing options...
mlinder42 Posted October 12, 2011 Report Share Posted October 12, 2011 Does the spouse have a SS# or an ITIN #? Quote Link to comment Share on other sites More sharing options...
Catherine Posted October 13, 2011 Author Report Share Posted October 13, 2011 @mlinder42 -- Spouse has an ITIN and is self-employed (handyman; odd jobs). @jainen -- will do; thank you _very_ much for the recommendation. Worst that happens is the same as doing nothing - clients have to pay back the credit. Not that they _have_ any money -- a handyman and an artist.... Catherine Quote Link to comment Share on other sites More sharing options...
Pacun Posted October 13, 2011 Report Share Posted October 13, 2011 It's a bit Big Brotherly that tax returns are being cross-checked with immigration files, but that's life in the 21st century. No need from little siblings when big brother issued an ITIN to spouse. Quote Link to comment Share on other sites More sharing options...
mlinder42 Posted October 13, 2011 Report Share Posted October 13, 2011 He should not have been working to begin with.An ITIN is not permission to work.He needs a green card. Quote Link to comment Share on other sites More sharing options...
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