Thomas B. McCarthy, Jr. and Janice R. McCarthy - Page 4

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                  Petitioner filed a joint 1991 Federal income tax return with                        
            Janice R. McCarthy.  The three children of petitioner's former                            
            marriage were claimed as dependents on the return.  No                                    
            declaration of the custodial parent was attached to the 1991                              
                  In the notice of deficiency, respondent disallowed the                              
            claimed dependency exemptions having determined that petitioner,                          
            as the noncustodial parent, is not entitled to claim the                                  
            exemptions in the absence of a written declaration from the                               
            custodial parent.  Petitioner argues that he claimed the children                         
            as dependents in prior years and respondent did not disallow said                         
            claim.  He further argues that Rosalie McCarthy wrongfully                                
            refused to provide a written declaration pursuant to the                                  
            separation agreement.                                                                     
                  Generally, section 152(e)(1) provides that the custodial                            
            parent is entitled to the exemption for children of divorced or                           
            separated parents.  There are three exceptions to the general                             
            rule.  Section 152(e)(2) provides an exception if the custodial                           
            parent signs a written declaration that the custodial parent will                         
            not claim such child as a dependent for any taxable year                                  
            beginning in such calendar year, and the noncustodial parent                              
            attaches such written declaration to the noncustodial parent's                            
            return.  Section 152(e)(3) allows a child to be claimed as a                              
            dependent by a taxpayer other than the custodial parent if there                          
            is a multiple support agreement permitting same.  A further                               

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