Form 8332 vs Divorce Decre

[Unregistered]

If dependency exemption cannot go to noncustodial parent without 8332, whats to happen to noncustodial parent who has abided with all provisions of divorce decree and cannot get a signed 8332 from exspouse?

[taxmandan]

Divorce decree and 8332

Their recourse is to go back to court and get the judge to require the 8332 be signed as a part of the divorce decree. Not a very exciting prospect, but what can you do when the feds and state courts aren't on the same page? If the lawyers were doing their job they would add this to the divorce agreements.

[jainen]

The problem

The problem is that the divorce decree usually doesn't require the custodial spouse to give up the exemption, even if it says the ex can claim the dependent. At best it's conditional, like "...if child support payments are made." A smart lawyer would make sure the decree complies with tax law, in which case you could use it without Form 8332. A local judge simply can not change federal laws, but the court will basically uphold the original agreement unless there are changed circumstances.

[JG EA]

Divorce Decree

They can also attach the divorce decree according to Pub 17 Chapter 3 that discusses "Children of divorced or separated parents".

[jainen]

a very rare document

No, that's what we are talking about. Congress rescinded that provision after Pub 17 was published, in a law signed on Dec. 21. They don't issue updates to Pub 17. That's why you need The Tax Book.

We are back to the old rules that say you can't use the decree unless it has all the information of Form 8332, including the unconditional assignment of the exemption by the custodial parent for a specifically named child in a specifically identified year, with an unconditional promise to not claim the child. That's a very rare document.

[JG EA]

Oops

Missed that. OK where can I find that new law and explanation?

[jainen]

Place Order

You are on the web site for The Tax Book, so scroll up to the top of this page and click on PLACE ORDER. Or at least click on Updates, and the good editors will answer your question for free!

It's the Gulf Opportunity Zone Act, of course. Isn't it obvious that deals with the release of exemption, retroactively, no less? The exact requirement is

"a written declaration (in the manner and form prescribed by IRS regs)"

8332 is the form prescribed by IRS regs.

[Bees Knees]

Missed that. OK where can I find that new law and explanation?

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