You can include your child on your tax return as your dependent, if your child qualifies.
If two people claim the same child, the IRS will ask for more info and discover the other person is illegally claiming your child. Unfortunately, this will delay your refund.
You can also use Form 3949-A, Information Referral to report suspected tax fraud. The IRS does not take tips over the telephone @Teelaree.
How Do You Report Suspected Tax Fraud Activity?
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