My ex-wife claimed a daughter (her daughter from a previous marriage) for 10 years. We did not file a joint return and she always filed as head of house hold.
She was reported to the IRS for this and can't provide any proof mail, school records, medical records etc, that the person lived in our home or resided in the united states during that time. (Her daughter is in Trinidad the W.I.) She claimed her for 2009 and she was in Trinidad giving birth to her own child. The lease lists all residents and the persons name is no where to be found. What kind of penalty can my ex-wife receive or will she just have to pay the money back (which is what we are hoping)?