Nathaniel Carter - Page 5

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          liability for the tax deficiency at issue.  We find that the                
          burden of proof does not shift to respondent because petitioner             
          has failed to comply with the requirements of section 7491(a)(1).           
               Section 151(c)(1) allows a taxpayer to claim an exemption              
          deduction for each qualifying dependent as defined in section               
          152.  Section 152(a)(1) defines a “dependent” to mean a son or              
          daughter of the taxpayer if over half of the child’s support was            
          received from the taxpayer or is treated under section 152(e) as            
          received from the taxpayer.                                                 
               Section 152(e) provides a special rule in the case of a                
          child of divorced parents.  Section 152(e)(1) provides that, if             
          the child receives over half of his support from his parents and            
          he or she is in the custody of one or both of his parents for               
          more than half of the year, then the child is treated as                    
          receiving over half of his support from the custodial parent.               
          Because Ms. Clay was awarded custody of Junior in the 1986                  
          divorce decree, she is the custodial parent.  Sec. 1.152-4(b),              
          Income Tax Regs.                                                            
               Pursuant to section 152(e)(2), the child is treated as                 
          receiving over half of his or her support from the noncustodial             
          parent only if the custodial parent signs a written declaration             
          that the custodial parent will not claim the child as a dependent           
          and the noncustodial parent attaches the declaration to the                 
          noncustodial parent’s return.  The declaration required by                  

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