Tax Court in Brief | Hicks v. Commissioner: Dependency Deductions

Share this Article
Facebook Icon LinkedIn Icon Twitter Icon

Freeman Law is a tax, white-collar, and litigation boutique law firm. We offer unique and valued counsel, insight, and experience. Our firm is where clients turn when the stakes are high and the issues are complex.

The Tax Court in Brief – February 21 – 25th 2022

Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

For a link to our podcast covering the Tax Court in Brief, download here or check out other episodes of The Freeman Law Project.

Tax Litigation:  The Week of February 21, 2022, through February 25, 2022

Hicks v. Comm’r, T.C. Memo. 2022-10 | February 23, 2022  | Gale, J. | Dkt. No. 10406-17

Short Summary: This case presents a unique situation of when a noncustodial parent may claim a dependency deduction for a child. Petitioner conceded that the two children in issue (C1 and C2) did not reside with Petitioner for more than one-half of the tax year and thus could not be “qualifying children” for dependency purposes. But, Petitioner claimed that the children were still “qualifying relatives” since Petitioner provided over one-half of their support; thus, Petitioner claimed that the dependency deductions and child credits remained available.

Primary Holdings: 

Key Points of Law:  

Insights: When a non-custodial parent requests a dependency exemption for a child, the person should be prepared to show that the child is, under law, a “qualifying child” or a “qualifying relative,” and the taxpayer should obtain and submit with his or her returns, an IRS Form 8332, Release/Revocation of Claim to Exemption for Child by Custodial Parent, signed by the former spouse or the other parent. A court order entered after July 2, 2008 may not be used as a substitute for IRS Form 8332. A court order entered before July 2, 2008 may be used as a substitute for IRS Form 8332, provided the order contains substantially all information required by Form 8332.

Tax Court Litigation Attorneys

Need assistance litigating in the U.S. Tax Court? Freeman Law’s tax attorneys are experienced litigators with trial-tested litigation skills and in-depth substantive tax knowledge, having collectively litigated hundreds of cases before the U.S. Tax Court. Our tax controversy lawyers have extensive experience in Tax Court matters involving partnership audits and litigation under both the TEFRA and BBA regimes, international tax penalties, foreign trusts, valuation, reasonable compensation disputes, unreported income, fraud penalties, other tax penalties, and many other matters. We draw on our experience and wealth of tax knowledge to advise and guide clients through the entire tax controversy process, building the right strategy to resolve tax controversies from day one. Schedule a consultation or call (214) 984-3000 to discuss your Tax Court concerns or questions.