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A multiple support agreement allows individuals to waive their right to claim dependents on their tax return.
Taxpayers use Form 2120 when they want to claim a relative as a dependent on their tax return, but they dont pay enough of the cost of supporting that relative to do so under normal tax rules. If other people who contribute to the cost of caring for that relative agree, the taxpayer may be able to claim the dependent.
Taxpayers use Form 2120 when they want to claim a relative as a dependent on their tax return, but they dont pay enough of the cost of supporting that relative to do so under normal tax rules. If other people who contribute to the cost of caring for that relative agree, the taxpayer may be able to claim the dependent.
Normally, you should keep these tax records for three years. Its a good idea to keep some documents longer, such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property documentation.
Internal Revenue Code section 6502 provides that the length of the period for collection after assessment of a tax liability is 10 years. The collection statute expiration ends the governments right to pursue collection of a liability.
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Multiple support agreement permits a taxpayer to claim dependency exemption of a dependant when more than one taxpayer is supporting that dependent. Permission to claim the exemption is granted by other taxpayers who are financially supporting the dependent.
Use Form 2120 to: Identify each other eligible person who paid over 10% of the support of your qualifying relative whom you are claiming as a dependent, and. Indicate that you have a signed statement from each other eligible person waiving his or her right to claim that person as a dependent.
2. Six Years for Large Understatements of Income. The statute of limitations is six years if your return includes a substantial understatement of income. Generally, this means that you have left off more than 25 percent of your gross income.
You generally may do so as long as your child is either under age 19 (nonstudents) or under age 24 (students). But there is a reason to not claim your child as a dependent and it has everything to do with higher education.
Example of Multiple Support To claim the parent, each of the siblings must sign a multiple support agreement identifying which of the children will claim the dependent for that tax year. The two relations who contributed less than 10% do not need to sign an agreement.

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