What you are hoping for will happen, but a bit later. The IRS processes the returns at face value. Later on there is a "matching" process that takes place that will notice that the children are on two returns. At that time the process generally goes a little like this (but it can vary):
- All parties claiming the children receive a letter indicating that the children are listed on more than one return. It gives an overview of who should claim them and asks that the taxpayer amend his or her return if the children should not be on it.
- After a period of time, if no such amended return is received, the IRS sends another letter, this time requesting proof that the children should be claimed by the taxpayer addressed. The letter will list the specific items that the IRS would like to see in support of the claim, where to send them, and the date by which a response is required (or the return will be automatically adjusted).
- The IRS will make a decision based on the responses (or lack thereof) and adjust the return for the person who is not entitled to claim the children and send them a bill for the taxes owed, plus interest and penalties. If certain credits were claimed the taxpayer may be barred from taking these credits for a number of years.
Note, that going through this process once, does nothing really to stop the other party from claiming the children again in the future, starting this same process all over again.
