Taxation
Ca. Tax Lawyer OCTOBER 2018, VOLUME 27, NUMBER 3
Content
- 2018 Annual Meeting of the California Tax Bar and California Tax Policy Conference Sponsor Guide
- 2018 Meeting Eagle Lodge West
- A Cultural Compulsion to Share All Gives Way to a Passion for Confidentiality and Non-Disclosure in Tax Matters Section 7525 Federally Authorized Practitioner Privilege and the Work-Product Doctrine in Today's World
- A Request for Guidance and Relief from the Timely Reporting Requirement of Section 1.482-1(a)(3) of the Internal Revenue Regulations
- Advisors and Liaisons
- An Uncertain Future: How the Potential Clawback Muddies the Estate and Gift Tax Waters
- Cla Staff
- Contents
- Executive Committee
- Helpful Suggestions for Improving Compliance with Information Regarding Beneficiaries Acquiring Property from a Decedent (Form 8971) and the Associated Basis Consistency Requirements
- Masthead
- Message from the Chair
- Standing Committees
- Tax Business
- Taxation Section 2017-2018 Leadership Directory
- Visiting the Committees
- Amendment of Internal Code Section 152(e) in Order to Better Reflect Taxpayer Reality and Ensure Taxpayer Saftey
Amendment of Internal Code Section 152(e) in Order to Better Reflect Taxpayer Reality and Ensure Taxpayer Saftey
By James Creech2
I. EXECUTIVE SUMMARY
IRC Section 152 is a lynchpin code section for many individual taxpayers. Section 152 defines who is a dependent for federal tax purposes. Under current law, who is a dependent, and who may claim the dependent, is determinative of who may claim certain deductions and credits.
Section 152(e) creates a narrow set of circumstances where a non-custodial parent may claim a dependent that lives with the other parent. In order for the non-custodial parent to claim a dependent, the custodial parent must sign a written declaration unconditionally stating that the custodial parent will not claim the dependent for a taxable year. It must name the parent who will claim the dependent and the tax year or years for which the release is valid. The non-custodial parent must attach the statement from the custodial spouse to their return. The regulations specifically state that a court order or separation agreement may not serve as a release for tax purposes.