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entitlement to the dependency exemption is subject to change each
year. As such, the order does not conform in substance to Form
8332 because it fails to state with specificity the applicable
tax year or years for which petitioner is entitled to the
dependency exemption.
Therefore, we find that the order does not constitute a
written declaration under section 152(e)(2). Accordingly,
petitioners are not entitled to a dependency exemption deduction
for Shane in the taxable year 2001.7 Respondent’s determination
on this issue is sustained.
B. Child Tax Credit
Section 24(a) provides that a taxpayer may claim a credit
for “each qualifying child”. A qualifying child is defined,
inter alia, as any individual if “the taxpayer is allowed a
deduction under section 151 with respect to such individual for
the taxable year”. Sec. 24(c)(1)(A). For the reasons stated
above, petitioners may not claim a dependency exemption deduction
for Shane under section 151, and, therefore, they may not claim a
child tax credit. Respondent’s determination on this issue is
sustained.
7 At trial, petitioner testified that he and Laurie had a
civil relationship, and he suggested that Laurie might be willing
to execute a Form 8332. For future tax returns, if Laurie were
to properly complete and execute a Form 8332 releasing her claim
to the dependency exemption, and if petitioners were to attach
such form to their return, then, at least for the taxable year or
years subject to such form, petitioners might succeed in avoiding
the issues that have arisen in the present case.
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Last modified: May 25, 2011