Miguel A. Echevarria - Page 5

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                    (I) is a brother, sister, stepbrother, or                         
                    stepsister of the taxpayer (or a descendant                       
                    of any such relative) or is placed with the                       
                    taxpayer by an authorized placement agency,                       
                    (II) the taxpayer cares for as the                                
                    taxpayer’s own child, and                                         
                    (III) has the same principal place of                             
                    abode as the taxpayer for the taxpayer’s                          
                    entire taxable year.                                              
               It is clear that Manuel was neither a child, stepchild or              
          descendant of petitioner.  Thus, we look to whether Manuel would            
          qualify as an eligible foster child.  In this connection,                   
          petitioner cared for Manuel as his own child, and Manuel lived              
          with petitioner for the entire year.  However, there is nothing             
          in this record indicating that the provision of section                     
          32(c)(3)(B)(iii)(I) has been satisfied, that Manuel was placed              
          with the petitioner by an authorized placement agency.  The                 
          record is silent on this matter.  Since the relationship test has           
          not been satisfied, we conclude that petitioner did not have a              
          qualifying child for purpose of an earned income credit, and                
          respondent’s determination is sustained on this issue.                      
               We next consider the child tax credit.  A taxpayer may be              
          entitled to a credit against tax with respect to each “qualifying           
          child”.  Sec. 24(a).  Among other requirements, section 24(c)(1)            
          (C) provides that “such individual bears a relationship to the              
          taxpayer described in section 32(c)(3)(B).”  Since we have                  
          concluded for purposes of the earned income credit that Manuel              






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