PLEASE NOTE: 

The Internal Revenue Service has (once again) changed its interpretation of the law regarding the “special support test for divorced and separated parents.” 

The "Tax Tip for Never Married Dads" that previously appeared at this website, explaining the circumstances in which a never-married non-custodial parent of a child born out-of-wedlock could claim the child dependency exemption, should be disregarded.

For the past several years, it was the official Internal Revenue Service (IRS) position that the entitlement to claim the tax exemption for a child of never-married parents was not controlled by the “special support test” (commonly known as the “custody rule”) but rather by the “regular support test” (taxpayer must have provided more than 50% of the dependent’s total support). 

That has now (once again) changed.  Effective with the 2003 tax year, IRS now says the “custody rule” DOES apply to never-married parents. The change of IRS position is apparently the result of the decision of the US Tax Court in the case of King and Lopez v. Commissioner, 121 TC #12 (9/26/2003), which gave a revised interpretation to Internal Revenue Code § 152(e), the law creating the "special support test" for divorced and separated parents.

So, for tax years 2003 and thereafter ............ 

The "Tax Tip for Never Married Dads" that previously appeared at this website, explaining the circumstances in which a never-married non-custodial parent of a child born out-of-wedlock could claim the child dependency exemption, should be disregarded.

In view of the US Tax Court decision in the King/Lopez case and in view of the recent change of the IRS position, a non-custodial never-married parent should NOT claim the child as a dependent (regardless of how much support was paid) UNLESS the non-custodial parent's tax return is accompanied by a completed IRS Form 8332 signed by the custodial parent. 

LAWRENCE D. GORIN
Law Offices of L.D. Gorin
521 S.W. Clay St., Suite 205
Portland, Oregon 97201
Phone: 503-224-8884 (afternoons, Pacific time)
Fax: 503-226-1321
E-mail: LDGorin@pcez.com