Statutory requirements for dependency exemptions must be met fully.

• Author: Ely, Mark H.
• Position: Tax Court ruling

In Miller, 114 TC No. 13, the Tax Court held that a noncustodial parent's permanent divorce order granting him the right to claim his minor children as dependents on his tax return failed to satisfy the signature requirement of Sec. 152(e) (2), because his ex-wife never signed the order and therefore failed to assign him the right to the exemptions.

John Lovejoy and his wife Cheryl Miller separated in 1992 and finally divorced in 1993. The state court issued a permanent order of divorce, granting Miller sole custody of the couple's minor children, but also granting Lovejoy the right to claim the children as dependents on his tax returns. The order was signed by Lovejoy, the judge and Miller's attorney (merely as acknowledgement of its form); Miller herself never signed the document. The parties filed their 1993 and 1994 returns consistent with the terms of the order. Lovejoy, however, did not attach Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents; instead, he attached the relevant portion of the state court order.

In reviewing Sec. 152, the Tax Court drew attention to the necessity of a written declaration signed by the custodial spouse, indicating that the custodial spouse will not claim the children as dependents on the return. The court noted that such a declaration must be made on Form 8332 or a statement conforming to the substance of Form 8332. The court emphasized that satisfying the signature...