Our divorce was finalized in 2005. Our divorce decree states that both of us shall take turns claiming our daughter. My ex wife is the custodial parent, and I am the non-custodial parent. My ex wife claimed my daughter last year, and naturally, it was my turn to claim her this year. I have already received my tax refund and just learned last week that my ex also claimed my daughter this tax season too. My ex wife refuses to amend her tax return - she thinks I should be the one amending my tax return. I also do not think it is fair for me to have to amend my tax return, since it is my year. She is saying I will likely be the one being audited because the IRS will favor her situation over mine. What do I do now?
If your return was already processed and you received your refund, then her return will likely be rejected. The IRS will come to you both to determine who the exemption belongs to. It's not an audit, just an inquiry. Have your divorce decree handy to show the IRS who is entitled to the exemption for the tax year.