(1) No person has contributed more than half of the individual assistance, three siblings each provide 20% of the funds for the help of an elderly parent, as well as two other parents who each contribute 5%. The parent is a qualified parent who has received 70% of the help from children and other parents. The parent may be dependent because more than 50% of their help has been provided. To claim the parent, each sibling must sign a multiple support agreement indicating which of the children will benefit the creditor for that fiscal year. The two relations, which contributed less than 10%, are not obliged to sign an agreement. (i) a statement indicating each of the other persons who contributed more than 10 per cent. 10% of the individual assistance and who, if they had not provided more than half of the individual assistance, would have been allowed to claim the person as dependent; and (a) Section 152(c) provides that a taxable person is to be treated as if he had contributed more than half of a person`s assistance in respect of the calendar year (in cases where two or more taxable persons have contributed to the assistance of that person), if – This subsection does not apply in any case where more than half of the child`s maintenance is treated in this way; as if it had been obtained by a taxable person in accordance with Subsection (d) (3). In situations where programs such as social security or other public support funds provide most of the assistance to families, no one can claim to need a pension. For example, if two children provide 20% assistance and social security provides 60% of the assistance, neither child can claim their parent as needing a pension. A multiple support agreement allows individuals to waive their right to assert their loved ones in their tax return. The rules of several assistance agreements are tricky. 4. Any other person in the group who has contributed more than 10 per cent of that assistance shall make a written declaration to the taxable person who has asserted the creditor that that other person will not claim the natural person as viable for any tax year beginning in that calendar year.
To resolve these tax controversies, irs trial counsel proposed a simple solution.