Form 8615 & Guardianship

[taxladyworking]

Taxpayer is 16 years of age on 2020 tax return and claimed as a dependent on her grandparents 2020 tax return. Taxpayer received taxable unemployment (after UCE exclusion) of $10,200 which is considered unearned income for Form 8615. Taxpayer is considered a ward of the state of Oregon and grandparent has guardianship. Because the unearned income is over $2,200, Form 8615 is generated by Proseries. Form 8615 requires the parents name, SSN and taxable income to be entered on the form. If the child has no contact with parents and can not obtain their SSN or tax information what do I enter to meet the information required? Can I use the grandparents name, SSN and taxable income instead since the grandparent has guardianship of the child and is claiming the child on their return? 

[TaxGuyBill · Accepted solution]

Publication 929 says you need to write the IRS to get the information for the parents.    I suspect it will be a LONG wait for the IRS to respond, so you probably want to file a return with some estimated information, then amend when the IRS responds.

Parent's return information not available.

If a child can’t get the required information about his or her parent's tax return, the child (or the child's legal representative) can request the necessary information from the IRS.

How to request.

After the end of the tax year, send a signed, written request for the information to the Internal Revenue Service Center where the parent's return will be filed. (The IRS can’t process a request received before the end of the tax year.)

You should also consider getting an extension of time to file the child's return, because there may be a delay in getting the requested information..

The request must contain all of the following.

• A statement that you are making the request to comply with section 1(g) of the Internal Revenue Code and that you have tried to get the information from the parent.

• Proof of the child's age (for example, a copy of the child's birth certificate).

• Evidence the child has more than $2,200 of unearned income (for example, a copy of the child's prior year tax return or copies of Forms 1099 for the current year).

• The name, address, SSN (if known), and filing status (if known) of the parent whose information is to be shown on Form 8615.

A child's legal representative making the request should include a copy of his or her Power of Attorney, such as Form 2848, or proof of legal guardianship.

https://www.irs.gov/publications/p929#en_US_2020_publink100036257

Instructions to 8615:

Incomplete Information for Filing

If the parent's taxable income, filing status, or net unearned income of the parent's other children isn't known by the due date of the child’s return, reasonable estimates can be used. Enter "Estimated" next to the appropriate line(s) of Form 8615. When the correct information is available, file Form 1040-X, Amended U.S. Individual Income Tax Return.

https://www.irs.gov/instructions/i8615#idm139824533948768