Terry U. Neal - Page 9




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          satisfied in this case.  The Court holds that none of the                   
          statutory exceptions described above applies to the present case.           
               Although the divorce decree, by and through the dependency             
          exemption order, provides that petitioner is entitled to the                
          dependency exemptions for Nathan, it is well settled that State             
          courts, by their decisions, cannot determine issues of Federal              
          tax law.  See Commissioner v. Tower, 327 U.S. 280 (1946);                   
          Kenfield v. United States, 783 F.2d 966 (10th Cir. 1986); Nieto             
          v. Commissioner, T.C. Memo. 1992-296.  Unfortunately, regardless            
          of what is stated in the divorce decree and dependency exemption            
          order, the law is clear that petitioner is entitled to the child            
          dependency exemptions in 1994, 1995, and 1996 only if he complied           
          with the clear provisions of the Internal Revenue Code.                     
          Petitioner has failed in this regard.  Thus, the Court concludes            
          that, pursuant to section 152(e), petitioner is not entitled to             
          claim his three children as dependents for 1994, 1995, and 1996.            
          A partial remedy for petitioner, if any, lies in the Fayette                
          Circuit Court for enforcement of the provisions of the divorce              
          decree and dependency exemption order with respect to Nathan.3              
               Petitioner contends that he relied on IRS publications,                
          which stated that it would be sufficient for petitioner to attach           


          3                                                                           
               Petitioner did not indicate that he exerted any effort                 
          whatsoever to locate Ms. Mosley, nor did he indicate a belief               
          that, if he were to locate her, she would refuse to sign the                
          Forms 8332.                                                                 




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