What happens if we both declare the dependency exemption for the same child on two different returns?
IRS will probably match up the returns on its computer flagging program and request further information from each of you to substantiate your claim to the dependency exemption. This may result in a partial or full audit of both returns. IRS may simply deny the exemption to both parents or it may determine which parent is permitted to declare the exemption and deny the exemption to the other. The other parent may have penalties and interest to pay on the tax due for that year.
*Sadly, we had to bring back ads too. Hopefully more targeted.