Got audited

Just got audited and I’m frustrated. I’ve been divorced for over four years, and my ex has been living as a guest in our leased townhouse. I’ve been the one covering all the expenses—utilities, insurance, and even childcare and schooling. Now the IRS has decided that because he was a guest, I’m no longer considered head of household, but rather single. This makes no sense! I hold the lease, pay all the utilities, and handle all childcare costs. Yet, I’m being told I owe $7,000 because he didn’t move out before December 31st? He didn’t even contribute to the water bill! Do I seriously have to gather all the receipts for utilities, rent, school, and medical/dental insurance to prove that I’ve been fully supporting my kids, aside from the meager child support he provides?

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One response

  1. It sounds incredibly frustrating to deal with the IRS and their decision regarding your filing status, especially given your circumstances. The IRS has specific criteria for determining whether someone qualifies as Head of Household, and it typically hinges on whether you have a qualifying person living with you.

    Since your ex was living in the house as a guest and not as a dependent or a qualifying child, this could be why the IRS has taken that stance. It’s unfortunate, especially considering all the responsibilities and expenses you’ve handled on your own.

    To address this situation, it would be a good idea to gather all documentation that supports your position. This includes:

    1. Lease Agreement: To show you are the primary leaseholder.
    2. Utility Bills: Statements that reflect you as the responsible party.
    3. Childcare and Schooling Receipts: To demonstrate that you’ve covered those expenses.
    4. Insurance Documents: Proof of medical, dental, and any other relevant insurance under your name.

    Consider reaching out to a tax professional or accountant who can help walk you through the Audit process and advise on how to properly present your case to the IRS. They can help you understand if there’s a chance to appeal the IRS’s ruling or make a case for your Head of Household status based on the information you provide. Don’t forget to keep a clear record of all communications with the IRS as well.

    Lastly, you’re not alone; many people face challenges with tax authorities, especially during transitions like divorce. Good luck, and I hope you can resolve this issue in your favor.

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