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I've seen this mistake countless times in my 12 years working with tax issues. Last year, I had a client who thought a notarized letter would work instead of Form 8332. The IRS rejected it, and they ended up owing $3,200 plus penalties when they had to amend their return. Don't try to shortcut this process - the IRS is extremely strict about documentation between separated parents. They've tightened these rules specifically because of high rates of fraudulent claims.
It should be noted that Form 8332 only transfers certain benefits - specifically the Child Tax Credit and the dependent exemption. It does NOT transfer the right to file as Head of Household, Child and Dependent Care Credit, or Earned Income Credit. Those generally remain with the custodial parent regardless of Form 8332.
This is so much more complicated than I thought! My neighbor went through something similar and ended up getting audited because both parents claimed the same child. They had to pay back the credit plus penalties. Makes me nervous about my own situation with my ex.
Just to clarify what everyone's saying: Form 8812 is what you use to CALCULATE the Additional Child Tax Credit amount. Form 8332 is what transfers the RIGHT to claim the child from the custodial to non-custodial parent. Sounds like you're mixing up which form is needed. The dad isn't being rejected because he needs your permission - he's being rejected because he needs your permission IN THE SPECIFIC FORMAT the IRS requires (Form 8332).
This saved me so much money last year! My ex and I worked this out where he claims our daughter on even years, I claim on odd years. We make sure to properly file Form 8332 for the appropriate years. It's actually increased our combined refund by about $1,800 compared to when I was claiming her every year, since he's in a higher tax bracket.
I'm still angry about how complicated they make this!!! š¤ Last year I gave verbal permission to my child's father to claim our son and we BOTH got audited because we didn't know about this stupid form! Cost us both money and stress we didn't need. Why can't they just make this clearer in the filing instructions?!
Got through to the IRS last week after trying for days. How? Called right when they opened at 7am Eastern. Only waited 12 minutes! The agent pulled up all my W-2 info and gave me the exact figures over the phone. Isn't that better than waiting for transcripts in the mail? They even helped me fill out the substitute W-2 form while on the call. Filed my return the same day and already got my refund yesterday!
I've successfully resolved this twice in the past three years. Most effective approach: contact your state's Department of Labor to file a complaint against the employer for failing to provide your W-2. Employers typically respond quickly when the DOL gets involved, as the penalties increase significantly. In my case, I had the W-2 within 48 hours of the DOL contacting them. This worked even when the employer initially ignored my certified letters and emails.
I waited exactly 47 days with zero updates after being accepted on January 23rd. Nothing worked - not calling, not checking transcripts, not the stupid tax advocate service. What finally worked was filing Form 911 (Taxpayer Advocate Service request) and specifically citing financial hardship. Within 8 days of submitting that form, my transcript updated and I got my refund 4 days later. It's ridiculous we have to jump through these hoops, but if you're desperate, it's worth trying.
This is consistent with what we're observing in the Return Processing Pipeline this season. There appears to be a systematic delay affecting approximately 15-20% of returns filed between January 22-29. The IRS Master File processing system undergoes periodic batching protocols, and your return may be caught in what we call a "processing queue anomaly." These typically resolve within 45-60 days of acceptance without requiring taxpayer intervention. The absence of transcript updates specifically indicates your return is in pre-processing status rather than under review or audit, which is actually a positive indicator.
The community wisdom here is that February filers often wait longer than January or March filers. It's like going to a restaurant during peak dinner rush - you'll wait longer than early birds or late diners. The N/A transcript with a letter is a common pattern this year, much more so than in previous filing seasons. Most people report it's just identity verification or confirmation of filing.
You might want to check if you have any credits on your return. Child Tax Credit or Earned Income Credit could potentially delay processing. Also, if your return was affected by any tax law changes, that might be causing the delay. The letter could be a simple verification request... I wouldn't be too concerned until you actually read what it says.
StarStrider
I can confirm this pattern is holding for tax year 2023 returns. According to Internal Revenue Manual 21.4.1.3(1), the IRS follows specific cycle posting dates that align with this 14-day offset for standard processing. My return was accepted on January 29, 2024, showed an 'as of' date of March 4, and my 846 code appeared with a DDD of February 19 - exactly following your 14-day pattern. Transcript updated at precisely 12:05am on a Saturday morning, and funds were in my account first thing Tuesday.
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Ravi Gupta
Has anyone noticed if this pattern holds true for amended returns? Or is it only applicable to original filings? What about returns with unusual credits or deductions? I've been tracking my transcript for weeks now, and understanding this pattern might help me predict when I'll finally see movement on my account.
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