Child Support Recept

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    Raymond Garnsey

    Just received client’s December bank statement.

    There was a direct deposit of $4,452 from the State of Connecticut Child Support Unit. Client did not report receipt of child support payments on his financial questionnaire. Asked client who has the kids, how old are they and what are the monthly payments supposed to be.

    Children are his wife’s from previous marriage. They are 35 and 32. Over the years the wife would receive maybe $10 a month and for years nothing. This came as a pleasant surprise to them. They used the money to pay some of fee and bills.

    How do I report this on the 433-A (OIC)? At the moment they would qualify.

    They have made large withdrawals each month with no receipts so I put those into Food, Clothing and Miscellaneous as well charges from Amazon for Christmas presents. Was that the correct assumption on my part?

    Eric Green

    Ray, the Offer is for future income, so I would explain that the kids are now in their 30s, it is the wife’s from moneys owed from years ago for past child support. There is no expectation of future payments and should not be considered as an income source.

    I expect the IRS will want to know how much more is still owed.

    Raymond Garnsey

    Thanks, Eric. I will note that in my cover letter.

    They withdrew $4,000 of the $4,452. Husband said they used the withdrawal to pay part of my fee, $600 they borrowed from his son, and to pay bills. I’m sure the IRS will want to know exactly where all of the $4,000 went.

    Their bank account for the most part shows negative balances and for 2019 they had over $4,000 in overdraft fees.

    Raymond Garnsey

    Working on the OIC package for this client.

    December’s bank statement will be required as well as Novemeber and January.

    The Statement also shows a few hundred dollars of Amazon purchases noted as Christmas gifts and the $4,400 was transferred to a third bank account.

    Is it better to wait until April then submit January, February and March’s bank statements so the IRS will not see the $4,400 transfer and Christmas gift purchases>

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