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There is no choice - alimony is specifically included into gross income fro income tax purposes.You suggest that your daughter to prepare her tax returns and report alimony as her income.
She still may claim her child as a dependent and might be eligible for the HOH - head of household filing status.
Let me know if you need any help with reporting.
The IRS will not discuss payment issues if all tax returns are not filed.So teh first step to prepare and file all missing tax returns.
After that - you may discuss payment options with the IRS.That may be installment payment plan or if payment will result financial hardship - she may ask for the status "currently not collectible"
That will allow her to avoid garnishments.Let me know if any details needed.
amended tax return are ONLY needed if she already filed tax returns and changes are required.
If she never filed - there is nothing to amend.
But otherwise - yes - she will need to amend.You will need to use form 1040X and attach also other forms and schedules that are affected.
Amended tax returns are mailed to the IRS - there is no e-file.
And processing might take up to 4-6 weeks.
Form 4868 will ONLY affect 2016 tax filing.You may pay any amount - it is understandable that without tax return we may not know the exact amount.
Just pay as much as possible - that amount will go toward her tax liability anyway.
I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all Social Security / Tax related issues.