Adoption and EITC

[Jake]

I have a client that adopted a child in 2006. The child was placed with the taxpayer on 8/9/06 and the taxpayer applied for and recieved a ATIN. The adoption was finalized in February of 2007. I filed the tax return and erroneusly used the adopted child as a qualifing child for the EITC. The taxpayer recieved a letter saying that we can't do that. My question is: Since the taxpayer can now get a SS no. for the child, can I go back and amend the 06 return and report the child under the SS No. as a qualifing child for the EITC. Thanks for any help.

[redux]

I have a client that adopted a child in 2006. The child was placed with the taxpayer on 8/9/06 and the taxpayer applied for and recieved a ATIN. The adoption was finalized in February of 2007. I filed the tax return and erroneusly used the adopted child as a qualifing child for the EITC. The taxpayer recieved a letter saying that we can't do that. My question is: Since the taxpayer can now get a SS no. for the child, can I go back and amend the 06 return and report the child under the SS No. as a qualifing child for the EITC. Thanks for any help.

Without any research on my part, my guess is NO! It is what it is at the time it is. So, at the time of the filing there was only an ATIN, that will be the disqualifying element.

The documents and the law at the time of filing are controlling. Things that occur AFTER the filing, as far as meeting the IRS conditions of a thing, would not be retroactive. I'm sure others will have differing opinions.

Can you apply for a driver's license (minimum age 16) if you're only 14 but know you will be 16 some day?

[Don in Upstate NY]

The documents and the law at the time of filing are controlling. Things that occur AFTER the filing, as far as meeting the IRS conditions of a thing, would not be retroactive.

I'm not sure that is true. The publication on EIC (Pub 596) gives an example where the parents do not have valid SSNs, and so do not qualify for EIC. They apply for valid SSNs, but do not receive them on a timely basis to file. When they do finally get the SSNs, the publication says to file an amended return to get the EIC.

[redux]

I'm not sure that is true. The publication on EIC (Pub 596) gives an example where the parents do not have valid SSNs, and so do not qualify for EIC. They apply for valid SSNs, but do not receive them on a timely basis to file. When they do finally get the SSNs, the publication says to file an amended return to get the EIC.

In the case cited here in this thread, the child already had an ATIN. In the case you're citing there was no original Taxpayer Identification Number for the PARENTS. I'm not convinced that we're talking about the same thing. My point is that if the child was disqualified at the time of the filing of the tax return...that fact cannot be changed by later filing an amended return because the situation changed AFTER the filing of the original, in other words the original facts remain unchanged. Also see:

Pub 596 Chap 2 Rule 8:

Social security number. Your qualifying child must have a valid social security

number (SSN), unless the child was born and died in 2006. You cannot claim

the EIC on the basis of a qualifying child if:

1. Your qualifying child’s SSN is missing from your tax return or is incorrect,

2. Your qualifying child’s social security card says “Not valid for employment” and was

issued for use in getting a federally funded benefit, or

3. Instead of an SSN, your qualifying child has:

a. An individual taxpayer identification number (ITIN), which is issued to a

noncitizen who cannot get an SSN, or

b. An adoption taxpayer identification number (ATIN), issued to adopting parents

who cannot get an SSN for the child being adopted until the adoption is final.

Remember the ATIN is NOT for the parents ...it is for the Child.

[TAXBILLY]

Doesn't the child have to live with the taxpayer more than half the year?

taxbilly

[redux]

Doesn't the child have to live with the taxpayer more than half the year?

taxbilly

Well, there are certainly other conditions that have to be met. The thread was started by asking about the ATIN so the other conditions were not mentioned. We know nothing about the child's age, and while an adopted child is treated (for tax purposes) as the taxpayer's biological child, apparently the adoption had not been completed before the return was filed. If true, the child fails the relationship test as well. So, yes there are other conditions that must be met in order to claim the child as a qualifying child for EITC. The parents. however, may be able to get some EIC based on NO CHILDREN, or on their own biological child, if they meet the conditions of that scenario.

The only point here is that this child is NOT a qualifying child for EITC because of the ATIN and no SS#. The rest of the conditions are moot. If you fail one condition, you have failed....

[TAXBILLY]

Actually the other condition was mentioned in the original thread. The original post said the child was placed with the taxpayer on 8/9/2006 which means the residency test was not met and therefore no EITC.

taxbilly

[redux]

Actually the other condition was mentioned in the original thread. The original post said the child was placed with the taxpayer on 8/9/2006 which means the residency test was not met and therefore no EITC.

taxbilly

That's the way I see it also.