“I expect that in 1973, only if the Dunhams were audited would they have to show a family blood/adoption relationship of the taxpayer to the claimed dependent. The IRS might demand that the tax filer show up with birth certificates and marriage licenses to support suspicious deductions. In no way would this be a suspicious deduction.”
Stanley Ann Obama was granted full custody in the Obama divorce, prior to the Soetoro marriage. After the Soetoro marriage, SSA and IRS would have been notified of the marriage name change from Obama to Soetoro after the marriage certificate was filed in Hawaii. Consequently, Stanley could file jointly and attach a notice of marriage name change with her tax return to avoid an audit. Since Stanley Ann was granted custody after the Obama divorce, she would have to show the final divorce decree to prove she and her husband, whom she chose to file jointly with, were entitled to take the deduction.
We know the Dunhams didn’t take a deduction for Obama on their tax returns because they were not granted custody. In 1971, the Soetoros were stripped of their custody rights and custody was transferred to CSS of CT through a contractual relationship they held with Office of Refugee Resettlement of HHS. Madelyn Payne Dunham was appointed Obama’s guardian.
If the Dunhams had taken a deduction for support and maintenance of Obama and then were audited, they could not prove custodial rights. Custodian rights must be assigned by a Court if the parents are not the custodian. Custodial rights could not be gifted to a relative. Otherwise, every wealthy grandparent would claim custody of their grandkids to save on taxes.
Per SvenMagnussen:
“We know the Dunhams didn’t take a deduction for Obama on their tax returns because they were not granted custody. In 1971, the Soetoros were stripped of their custody rights and custody was transferred to CSS of CT through a contractual relationship they held with Office of Refugee Resettlement of HHS. Madelyn Payne Dunham was appointed Obama’s guardian.”
All:
SvenMagnussen persists in posting claims, such as the one above, for which there is no evidence and have already been extensively debunked by evidence-seeking FReepers on this thread that was opened for that purpose:
“Obama Naturalized As A Citizen In 1983”
http://www.freerepublic.com/focus/f-bloggers/3005345/posts
Per SvenMagnussen:
“If the Dunhams had taken a deduction for support and maintenance of Obama and then were audited, they could not prove custodial rights. Custodian rights must be assigned by a Court if the parents are not the custodian. Custodial rights could not be gifted to a relative. Otherwise, every wealthy grandparent would claim custody of their grandkids to save on taxes.”
As a retired CPA I can assure you that there is absolutely NO IRS requirement that a tax filer prove custodial rights in order to claim a person as a dependent.
See:
“The Member of Household or Relationship Test
“Did the child you wish to claim as an exemption live with your for the entire year as a member of your household, other than during temporary absences by either of you due to illness, education, business, vacations, or military service?
“Yes _____ No _____
“Is the child related to you by birth or adoption?
“Yes _____ No _____
“If you answered yes to either or both of these questions, move on to the next test. If you answered no to both questions, stop here. You are not entitled to claim the child as a dependent/exemption.
“The Citizenship or Residency Test
“Was the child a U.S. citizen or resident, or a resident of Canada or Mexico, for some part of the tax year?”
Yes _____ No _____
“If you answered yes to this question, move on to the next test. If you answered no, stop here. You are not entitled to claim the child as a dependent/exemption.”
I haven’t looked at the exact 1973 language, but the current language above includes both citizen AND RESIDENT children and custody is NOT required.
The Dunhams could claim Barry as a member of household, related by birth and at a minimum a legal resident of the US by virtue of being enrolled in Punahou and residing with his grandparents who were providing more than 50% of his support. Being a citizen is not required now and I doubt it was required in 1973.