Just a reminder that TD 9408 is now in full bloom as it applied to tax years that began after 7/2/08.
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This regulation finally defines the term "custody" and also clearly defines who is the "custodial" parent. (Counting nights rule.)The regulation also contains language that explains when Sec.
152(e) dealing with divorced, separated, etc.. trumps parts of Sec. 152(c) and 152(d).
It makes a significant change in how a noncustodial parent is allowed to claim the dependency exemption. The custodial parent must provide IRS Form 8332 or a signed statement conforming to the language in Form 8332 to the noncustodial parent. It must be attached to the noncustodial parent's tax return (use Form 8453 if e-filing). Pages from a divorce decree or separation agreement are no longer valid.
Form 8332 now includes the ability of the custodial parent to unilaterally revoke a previous 8332.