Sister supports Mom and Nephew but Absent Ex-Wife claimed Nephew on taxes - What now?

This is probably a case where your sister needs to paper file her return... I believe the IRS will then review both returns claiming the same dependent and make a determination. She should be prepared to provide evidence that she's the qualifying person to claim the child, such as school records showing the child lives with her, medical records, etc. It might take some time to resolve, but if she truly provides more than half the support and the child lives with her, she should prevail in this situation.

Went through almost this EXACT situation last year with my niece. My sister (not the bio mom) was raising her, and the absent bio mom swooped in and claimed her on taxes. What a headache! 😤 We had to paper file with tons of documentation - school records, doctor's appointment records, utility bills showing the address, even affidavits from neighbors. Took about 4 months to resolve but my sister eventually got her refund with the dependent credit. The IRS actually went after the bio mom for fraudulent claims. Turns out claiming a kid you don't actually support is *gasp* tax fraud! Who knew?

I had this EXACT problem with my stepson last year. His mom hadn't seen him in 2 years but claimed him anyway. I spent literally 3 weeks trying to get through to the IRS on their regular number - constant busy signals or disconnects after waiting for hours. Finally used Claimyr.com and got through to an agent in like 15 minutes. The agent walked me through exactly what documentation to submit with my paper return and how to write the explanation letter. Saved me so much stress during an already stressful situation. Here's their link if you want to check it out: https://youtu.be/_kiP6q8DX5c

OMG I literally just went thru this last yr! My bf's kid was claimed by his ex who hadn't seen the kid in like 18 mos. We paper filed w/ Form 8862 and included: school records showing our address, medical bills we paid, and a letter explaining the situation. Got approved after about 8 wks. The key is having proof the kid actually lives w/ ur sister. The IRS actually takes these cases pretty seriously bc a lot of ppl try to claim kids they don't actually support. Good luck!

Be prepared for a long wait. My cousin had this happen with her stepson two years ago, and it took almost 9 months to resolve. The ex-wife had claimed him despite not having seen him in over a year. The worst part was that my cousin's refund was held up the entire time - over $5,000 with the Child Tax Credit. She ended up having to take out a loan to cover expenses she had been counting on that refund for. Make sure your sister has a financial backup plan while this gets sorted.

This is a classic IRC Section 152(e) conflict scenario. The resolution pathway depends on several factors: 1. If there's a Form 8332 signed by the custodial parent (which seems unlikely given your description) 2. If there's a pre-2009 divorce instrument specifically allocating the exemption 3. The application of the tiebreaker rules in absence of the above In your case, the tiebreaker rules would likely apply, with residency being the primary factor (where the child lived for the majority of nights during the tax year). Your sister should complete Form 8862 (Information To Claim Certain Credits After Disallowance) along with her paper return and include substantial documentation proving residence and support.