Alan wrote:
- quote -

Headlines (see John Fisher's post) relating to the Sec. 152(e)
Final regs.

Here is the CCH Statement:

"A court order or decree or a separation agreement cannot serve
as the written declaration. The noncustodial parent must attach a
copy of Form 8332 or the written declaration to the parent's
return for each year that the child is claimed as a dependent."

If a tax preparer merely relies upon the CCH summary and does not
read the regs and the examples, they will miss the fact that
there is an exception to the above statement. Paragraph (e)(5) of
the Regs states that a written declaration executed in a taxable
year on or before 7/2/08 that satisfied the requirements for a
written declaration at the time of execution, meets the new
requirements for a written declaration. Therefore, a separation
agreement or decree that was executed on or before 7/2/08 that
unconditionally released the exemption to the noncustodial
parent, was signed by the custodial parent and was acceptable to
the IRS at the time, may still be used by the noncustodial parent
to claim the exemption.

Also note, that in this instance, the custodial parent may use
the new unpublished Form 8332 (or written document conforming to
the 8332), Release/Revocation of Release of Claim To Exemption
For Child by Custodial Parent, to revoke the release contained in
the agreement or decree.

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The Treasury has issued the final regs for IRC Sec. 152(e). This
is the section that deals with who is a dependent of divorced,
separated or never married parents. It is a must read for those
of you who deal with these types of taxpayers as it does contain
new information and sheds some clarity by including definitions
of terms never before published. E.g., the definition of a night
and a definition of custody.

http://edocket.access.gpo.gov/2008/pdf/E8-15044.pdf

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >