Research Problem 3 Locate IRS Form 2120 at wwwirsgov and ans

Research Problem 3. Locate IRS Form 2120 (at www.irs.gov), and answer the fol- lowing questions. a. Who must sign the form? b. Who must file the form? c. Can it be used for someone who is not related to the taxpayer? Explain.

Solution

a. Who must sign the form?

There is no requirement to sign the form. It is to be filled in and attached with the Income Tax Return. Though there is a requirement to get signed declarations from the other eligible persons waiving their rights to claim such deduction but these declarations also are not to be filed but to be kept by tax payer.

b. Who must file the form?

The taxpayer claiming the deduction of supporting the dependent is required to file Form 2120 since the form is to be attached with Income Tax Return.

c. Can it be used for someone who is not related to the taxpayer?

No this could not happen since there is a specific requirement of the dependent to be a qualifying relative of the taxpayer.

The qualifying relative must either live in the taxpayer\'s household all year or be related to the taxpayer as a child, sibling, parent, grandparent, niece or nephew, aunt or uncle, certain in-law or certain step-relative