James Leslie Clark Valarian - Page 3

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          not entirely clear from the record, it appears that for the year            
          1990, Ms. Silver also claimed dependency exemption deductions for           
          the children.  Respondent disallowed the dependency exemption               
          deductions claimed by petitioner with respect to the children,              
          explaining in the notice of deficiency that "the [divorce] decree           
          does not state that you are entitled to claim the children for              
          tax purposes and we have not received a [written declaration]               
          signed by the custodial parent releasing the exemption to you".             
               We begin by noting that deductions are a matter of                     
          legislative grace, and taxpayers must satisfy the specific                  
          statutory requirements of any deduction claimed.  INDOPCO, Inc.             
          v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v.            
          Helvering, 292 U.S. 435, 440 (1934).                                        
               Section 151(c) allows a taxpayer a dependency exemption                
          deduction for each dependent as defined in section 152.  The term           
          "dependent" includes certain individuals, such as a son or                  
          daughter, "over half of whose support for the calendar year * * *           
          was received from the taxpayer (or is treated * * * as received             
          from the taxpayer)".  Sec. 152(a).  In the case of a child of               
          divorced parents, generally the custodial parent is treated as              
          providing over one-half of the support of the child.  Sec.                  
               There are three exceptions to this rule.  The custodial                
          parent is not treated as providing over one-half of the support             

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