In Uncategorized on 09/19/2012 at 16:04

I take the title of this blogpost from the English band of that name, but it isn’t only Dylan Moody who will be blue. He’s blue enough, when his dependents’ exemptions and child tax credits are disallowed, despite Judge Goeke’s sympathetic declaration, in 2012 T. C. Memo. 268, filed 9/19/12.

It’s the usual Section 152(e)(2) story. This time Dylan has a divorce decree that gives Dylan the exemptions (doesn’t mention the credit, but that’s not at issue) and states that Tammy Jean, his loved-once, shall sign Form 8332 each year by January 10, so long as Dylan pays the child support. Tammy Jean is custodial parent, of course.

Dylan pays. Dylan attaches a Form 8332 for each of their two children, but neither is signed by Tammy Jean. He subsequently submits the divorce decree, but Tammy Jean didn’t sign that either. Besides, says Judge Goeke, it isn’t IRS’ function to police or enforce divorce decrees.

Of course, signature by the custodial parent is the essential element of Section 152(e)(2), so game over for Dylan.

But I’ve suggested before that the matrimonial Bar should make sure that 8332s are prepared, signed and filed at the point the divorce decree is issued. If the non-custodial spouse welshes on the child support, any tax refunds, among other monies, are attachable. And there’s jail time as well.

Some lawyers could get in trouble if the payor doesn’t get what she or he expected.


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