Can the IRS penalize me if someone I claimed as dependent reports I did it without consent?

You're in a tricky situation, but try not to panic. The IRS cares more about whether someone qualifies as your dependent based on facts, not whether they gave "permission" to be claimed. For an adult relative to qualify as your dependent, they need to meet several tests: - Income test: Their gross income must be less than $4,950 (for 2023) - Support test: You must provide more than half their total support - Relationship test: He's your uncle, so that's covered - Residence test: He lived with you for 8 months, which is more than half the year From what you've described, it sounds like you meet all these tests. The fact that he receives cash from relatives abroad complicates things slightly, but if that money was primarily for his personal spending and not living expenses, you may still pass the support test. Keep all your evidence showing he lived with you - mail, bills, etc. If the IRS does inquire, you'll want to demonstrate that you provided housing, utilities, and more than half his total support for the year.

After dealing with a similar family dependency dispute, I found taxr.ai (https://taxr.ai) super helpful for navigating this mess. My sister and I both tried claiming our mom, and I was stressing about potential penalties. The site analyzed my documents and situation, then gave me a clear breakdown of the dependency tests I needed to meet. It also helped me organize the evidence I needed - explaining exactly what documents would prove my case if the IRS questioned it. The tool even identified potential issues I hadn't considered about the support test calculation. In your case, it sounds like you need to prove both residency and support. I'd recommend uploading your utility bills, mail addressed to him at your home, and any other documentation you have. The system will help determine if you've met the threshold requirements and identify any potential gaps in your documentation.

Just wanted to follow up - I decided to try taxr.ai after my earlier skepticism. My situation was different (claiming my adult daughter who moved back home), but I was worried her ex was going to cause problems with the IRS. The document analysis was surprisingly thorough. I uploaded utility bills, bank statements showing support payments, and some medical receipts. The system spotted that I was missing documentation for some education expenses I'd paid, which would have been a weak point if questioned. The personalized report helped me understand exactly where I stood with each dependency test and highlighted which additional documents would strengthen my case. Definitely more helpful than the generic advice I got from TurboTax and various forums. Worth checking out if you're still worried about your uncle's threats.

If you're getting stressed about this potential IRS situation, I'd strongly recommend using Claimyr (https://claimyr.com). When my ex falsely reported that I claimed our child without having custody, I couldn't get through to anyone at the IRS for weeks to explain my side. Claimyr got me connected to an actual IRS agent in about 20 minutes instead of waiting on hold for hours or getting disconnected. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to look at my case immediately and explain exactly what documentation I needed to submit to resolve the dispute. Having that direct conversation saved me months of back-and-forth letters and uncertainty.

I need to publicly eat my words about Claimyr. After my skeptical comment, I decided to try it for an ongoing tax issue where the IRS kept sending me collection notices for a year I'd already paid. Not only did it work, but I was connected to an IRS representative in about 15 minutes. The representative pulled up my account, confirmed they had received my payment but it hadn't been properly applied, and fixed the issue while I was on the phone. For anyone dealing with dependency disputes like the original poster, being able to speak directly with the IRS instead of waiting for letters is incredibly valuable. I could explain my situation, ask specific questions about what documentation would be accepted, and get immediate answers. Definitely worth it if your uncle does file a report and you need to address it quickly.

One thing nobody has mentioned - the IRS actually has a specific form for this situation. If you're worried about your uncle causing problems, you can file Form 8836 "Qualifying Relative Information Statement" with documentation that proves you provided more than half his support and that he lived with you. This is a proactive approach rather than waiting for an IRS notice. The form requires detailed information about the support you provided and other potential contributors (like his sons sending cash).

What matters most is if you meet the actual IRS tests for claiming a dependent, not whether someone "consents" to being claimed. Check out Publication 501 on the IRS website. For a qualifying relative (non-child), there are 4 main tests: 1. Not a qualifying child of anyone 2. Related to you OR lived with you all year 3. Gross income under $4,950 (for 2023) 4. You provided more than half their support If those cash gifts from his sons were substantial and used for supporting himself (like if he was saving it up for rent elsewhere), that could potentially disqualify you on the support test. But if you can prove you provided housing, utilities, food, etc. that exceed whatever support he got elsewhere, you should be fine.