New CCA

[kcjenkins]

The IRS issued a CCA last week that outlines the requirements both prior to the effective date of the new regulations as well as after Those regulations provide a list of the documents to be submitted for a noncustodial parent to claim the dependency exemption. That blog post is at:

http://ascpa.wordpress.com/2009/06/28/irs-...aim-exemptions/

[jainen]

>>-noncustodial-parents<<

I suppose the IRS can impose this "only purpose" rule because the code says "in such manner and form as the Secretary may by regulations prescribe." It's kind of harsh though, seeing how difficult some divorces are.

You remember when the law was going to allow the divorce decree even if it was not unconditional, but then Congress changed it back before that took effect? Well, California conformed to the first change but not the newest version. For the state return, the divorce decree still determines who claims the kids--that could be the opposite of the federal return. And you know, it's a big part of our practice here because we have a lot of divorces and other kinds of separated parents in California (without even talking about all the different definitions of marriage and parent).

While we're on the subject, don't forget that Form 8332 follows the old qualifying relative rules, NOT qualifying child. One way to cut out the non-custodial parent even after signing the release is to simply run half the support through Grandma or AFDC or multiple sources.