On August 2, 2019 and July 1, 2019, the Department issued return adjustment notices to the taxpayer for tax years 2016, 2017 and 2018. On August 2, 2019, the Taxpayer filed a timely protest with the Department. The Taxpayer argued that for the tax years in question she was able to claim her grandchildren as dependents and the qualifying credits for dependents on her tax returns. The Department agreed that the grandchildren could qualify as dependents if they met the definition found in 26 U.S.C Section 152 of the Internal Revenue Code. Evidence was provided and the Hearing officer determined that the Taxpayer was entitled to claim the grandchildren as dependents in 2016. However, for tax years 2017 and 2018 there was no evidence to show whether the custodial parents claimed the children on their tax returns. Therefore the evidence was not sufficient to provide entitlement to state tax credits. For the foregoing reasons, the Taxpayer’s protest was granted for 2016 and denied for 2017 and 2018. It was further ordered that the Department reanalyze the refund denials for 2017 and 2018 and take appropriate action consistent with this decision and order.