Donnell L. James - Page 5

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          claim the children as dependents only if one of three statutory             
          exceptions in section 152(e) is met.  If an exception is met, the           
          “noncustodial parent” is treated as providing over half of a                
          child’s support.  We focus on section 152(e)(2), the one                    
          exception on which petitioner relies.                                       
               Section 152(e)(2) will apply if “the custodial parent signs            
          a written declaration” that such custodial parent will not claim            
          such child as a dependent, and the noncustodial parent attaches             
          such written declaration to the noncustodial parent’s return for            
          the taxable year.                                                           
               A Form 8332 was provided by petitioner.  Ms. James signed              
          the form for 1997 before other words were added.  Petitioner at             
          trial admitted he wrote the words “98 ‘All Future Years’” after             
          the reference to 1997 on the Form 8332.  Petitioner claimed this            
          was agreed to verbally, which is inconsistent with the fact that            
          Ms. James claimed both children for 1999.                                   
               Under the statute, the “custodial parent” must sign a                  
          “written declaration” releasing his or her claim to the                     
          exemption.  For 1999, petitioner had no written declaration                 
          signed by the custodial parent, Ms. James.  See sec. 1.152-4T(a),           
          Q&A-4, Temporary Income Tax Regs., 49 Fed. Reg. 34459 (Aug. 31,             
          1984).  Petitioner was not entitled to claim the dependency                 









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