- 13 -
lessening the Internal Revenue Service’s involvement in these
disputes. Accordingly, respondent’s insistence on the presence
of Form 8332 or the language “agree not to claim” or “will not
claim” in this case was overly formalistic and ultimately
undermined the intent of section 152(e)(2). We find that
petitioners are entitled to the dependency exemption deductions
for 1998.
3. Child Tax Credit
Section 24(a) provides that a taxpayer may claim a credit
for “each qualifying child”. A qualifying child is defined as
any individual if “the taxpayer is allowed a deduction under
section 151 with respect to such individual for the taxable
year”. Sec. 24(c)(1)(A). Petitioners are entitled to claim
dependency exemption deductions under section 151; they are
therefore also entitled to the child tax credits.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for petitioners.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Last modified: May 25, 2011