Your roommate needs to file a 1040-X (amended return) immediately and pay back the extra refund he received from falsely claiming the dependent. He's committed tax fraud, plain and simple. The IRS matches Social Security numbers on tax returns, so they will eventually notice that this kid was claimed by someone with no relation and no history of claiming them before. They may also investigate whether the parent was involved in selling the dependent claim. Both your roommate and the neighbor could face serious consequences. In addition to penalties and interest, tax fraud can be prosecuted criminally with up to 3 years imprisonment for each false statement. The $400 payment creates evidence of willful intent to defraud, which makes it much worse.

One thing nobody's mentioned yet - your roommate should NOT contact the neighbor about this! He needs to fix his return independent of whatever the neighbor does. Reaching out could be seen as conspiring to get stories straight, which makes everything worse. Also, your roommate should NOT spend that refund money! The IRS will want it back plus interest, and possibly penalties. He should set aside the entire amount related to the false dependent claim so he can return it when he files the amended return. The Earned Income Credit alone for falsely claiming a child can be thousands of dollars. The IRS specifically targets EIC claims for audits because it's so frequently abused.

Quick tip about the VIN issue - I'm a car salesperson and see this problem ALL THE TIME with hybrid tax credits. There's often a disconnect between how the manufacturer reports VINs to the IRS and how dealers record them. Sometimes it's as simple as a space or dash in the wrong place. Get your Manufacturer's Statement of Origin (MSO) from the dealer - this is the birth certificate of your car and has the VIN exactly as the manufacturer recorded it. Compare this to what you submitted. I've seen cases where someone put a letter O instead of a zero or vice versa. Also, check if your specific hybrid model has the required battery capacity for the credit you're claiming. The requirements changed in 2023 and some vehicles that qualified before no longer do.

Just wanted to add one more resource that helped me with my hybrid credit appeal - the IRS has Publication 535 which specifically covers business deductions, but more importantly for your situation, they have a lesser-known document called "Appeals Mediation Guidelines" that you can request when filing Form 12203. When I was dealing with my denied electric vehicle credit (similar situation), I discovered that you can specifically request "fast-track mediation" on your Form 12203 if the disputed amount is under $25,000. This process is designed to resolve cases within 40-60 days instead of the typical 6+ months for regular appeals. The key thing I learned is to be very specific about WHY you believe the IRS determination was incorrect. Don't just say "I qualify for the credit" - explain exactly what documentation proves your vehicle qualifies, when you purchased it, and why their VIN verification system may have failed to match your car properly. Also, since you mentioned the dealership couldn't help initially, try contacting your car manufacturer's customer service directly. They often have a tax credit verification department that can provide official documentation showing your specific VIN qualifies for the credit during your purchase period.

Any good resources to learn about partnership tax? I've been using Becker but their partnership stuff isn't very thorough. Have an interview next month and need to study up.

As someone who struggled with partnership tax concepts during my own CPA studies, I'd recommend starting with the fundamentals and building up. Here's what helped me: First, master the basic flow: Partnership income/losses flow through to partners based on their ownership percentages, but partners are taxed on their allocated share whether or not they receive distributions. This is key to understanding everything else. For guaranteed payments vs distributions, think of it this way: Guaranteed payments are like paying an employee (deductible expense, subject to SE tax), while distributions are like paying dividends to shareholders (not deductible, generally no SE tax). The Section 754 election is all about fairness when someone buys into an existing partnership. Without it, new partners can get stuck paying tax on appreciation that happened before they joined. Practice with real numbers - work through examples where you calculate the tax impact on both the partnership and individual partners. This will make the concepts stick much better than just reading about them. Good luck with your interview! The fact that you're preparing this thoroughly shows you're taking it seriously, which will definitely come across to the interviewers.

pro tip: if id.me fails try early morning or late night. servers less busy

If you're still having trouble with ID.me verification, try calling the IRS transcript line at 800-908-9946 instead. Yes it takes 5-10 business days by mail but at least you'll have a definite timeline. I was in a similar crunch for my mortgage and ended up going this route when the online kept failing. Make sure you have your SSN, DOB, and prior year AGI ready when you call. They can also sometimes expedite if you explain it's for a mortgage closing.

Don't forget about property tax implications too! Some states have homestead exemptions that only apply to your primary residence. If your husband establishes residency in the new state before you sell your current home, you might lose eligibility for the homestead exemption which could significantly increase your property taxes for those remaining months. We learned this the hard way when my spouse moved ahead of me - our property tax bill suddenly increased by $2,200 because we lost our exemption. Might be worth checking with your county tax assessor about the rules for your specific location.

This is such a timely question! I went through almost the identical situation when my spouse relocated for work in 2023. Here's what I learned from our experience and CPA: The key distinction is between "statutory residency" (based on days/physical presence) and "domiciliary residency" (based on intent and permanent home). Your husband may become a statutory resident of the new state due to the 183-day rule and having an apartment there, but your domicile can remain in your current state until you actually make the permanent move in May. A few critical points: 1. Document EVERYTHING - keep records of when utilities are disconnected/connected, school enrollment changes, the home sale date, and moving expenses 2. Be consistent with your story - don't file as residents of the new state while still claiming homestead exemptions in your current state 3. Consider the timing of your home sale carefully - this is often considered the clearest indicator of when domicile actually changed We ended up filing part-year resident returns in both states with May as our official domicile change date, and neither state questioned it because our documentation was consistent. The small overlap period where we paid taxes to both states was offset by credits for taxes paid to other states. Your accountant's advice sounds reasonable, but make sure they're familiar with both states' specific rules since they can vary significantly!