Emmanuel M. and Blessing N. Nwankwo - Page 12

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          in 2002, in order to decide this issue, we must resolve the                 
          residency requirement of section 151(e); that is, we must                   
          consider whether either of the claimed individuals could be                 
          classified as a U.S. citizen or national in 2002.                           
               Under section 152(b)(3), an individual who is not a citizen            
          or national of the United States is excluded from the definition            
          of the term “dependent” unless the individual is a resident of              
          the United States.  Section 1.871-2, Income Tax Regs., contains             
          guidelines for determining if a noncitizen is a resident within             
          the meaning of section 152(b)(3).  See DeLauzirika v.                       
          Commissioner, T.C. Memo. 1971-181.                                          
               Section 1.871-2(b), Income Tax Regs., defines “residence”              
          as:                                                                         
                    (b) Residence defined.  An alien actually present in              
               the United States who is not a mere transient or sojourner             
               is a resident of the United States for purposes of the                 
               income tax.  Whether he is a transient is determined by his            
               intentions with regard to the length and nature of his stay.           
               A mere floating intention, indefinite as to time, to return            
               to another country is not sufficient to constitute him a               
               transient.  If he lives in the United States and has no                
               definite intention as to his stay, he is a resident.  One              
               who comes to the United States for a definite purpose which            
               in its nature may be promptly accomplished is a transient;             
               but, if his purpose is of such a nature that an extended               
               stay may be necessary for its accomplishment, and to that              
               end the alien makes his home temporarily in the United                 
               States, he becomes a resident, though it may be his                    
               intention at all times to return to his domicile abroad when           
               the purpose for which he came has been consummated or                  
               abandoned.  An alien whose stay in the United States is                
               limited to a definite period by the immigration laws is not            
               a resident of the United States within the meaning of this             
               section, in the absence of exceptional circumstances.                  






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