Shane Nolan and Monika Anne Lewis - Page 5

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               On their Federal income tax return for 2002, petitioners               
          claimed a dependency exemption deduction for the child and the              
          section 24 child care credit.  In the notice of deficiency,                 
          respondent disallowed the dependency exemption deduction and the            
          child care credit.                                                          
               Petitioners did not attach to their 2002 income tax return a           
          consent from the child’s mother, Form 8332, Release of Claim to             
          Exemption for Child of Divorced or Separated Parents, or a Form             
          2120, Multiple Support Agreement, wherein the grandparents and              
          the mother of the child consented to petitioners’ claiming the              
          child as a dependent on their 2002 Federal income tax return.4              
          Petitioners nevertheless claimed the child as a dependent on                
          their 2002 Federal income tax return.  Respondent disallowed the            
          dependency exemption deduction for the reason that petitioners              
          had not established they were entitled to the exemption because             


               4The Form 2120 is an acknowledgment by a group of                      
          contributors who have collectively provided over one-half of a              
          dependent’s support for a calendar year and who may annually                
          designate one of their number to claim the dependency exemption             
          deduction for the dependent.  The taxpayer who is designated as             
          entitled to claim the dependency exemption deduction must attach            
          a statement to his return identifying each member of the                    
          supporting group and, in general, comply with sec. 1.152-3,                 
          Income Tax Regs.  Petitioners testified that they had solicited a           
          multiple support agreement from the grandparents and the mother             
          to allow petitioners the dependency exemption deduction for 2002;           
          however, the grandparents and the mother declined.  Petitioners             
          also solicited a consent from the mother to allow petitioners the           
          dependency exemption deduction, and she also declined that                  
          request.                                                                    





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