Signature and child's tax return

[Kea]

My client accidentally included 2 1099Bs (over $1000 gross each) for her grandchildren. When I asked about them she said they didn't have to be filed -- it was just a small account for her grandchildren.

The investment she had lost money & so she took it out and moved it to CDs. So a return is needed to show the loss & prevent the IRS "nastygram." Zero taxable income / zero tax. She's been saving this money for them without telling them or their parents. Is there any way she can legally sign the return for them? She is the custodian of the accounts.

Or, does she have to reveal her secret & have the kid or mom sign? (One kid is too young to sign, but the other could sign her own return.)

Thanks

[grandmabee]

what if the parents also have an account for the kids? I think she needs to tell the parents. She can't sign the return for them. she not a parent or guardian.

[Kea]

I was pretty sure she couldn't. Just hoping for a "loophole" for being custodian. Long shot, I know.

Thanks