George v. Commissioner, 2012 U.S. Tax Ct. LEXIS 46

Ms. George executed Form 8332 in January 2007 releasing S.S.’s exemption pursuant to a Fairfax County, Virginia court order under compulsion to sign; the release covered 1996–2010.
Maryland divorce judgment gave Ms. George sole custody of I.E. and S.S., with Mr. John obligated to pay child support and provide health insurance if possible.
Maryland order in 1996 allowed Mr. John to claim S.S. as an exemption if all support was current; Ms. George complied by signing a prior Form 8332 for 1996.
In 2007 the Fairfax County circuit court ordered Ms. George to sign Form 8332 releasing S.S. for 1996–2010, which she did under threat of contempt; Virginia and Maryland proceedings followed.
Ms. George filed 2007 and 2008 Form 1040s showing S.S. as dependent; Mr. John attached the signed Form 8332 to his returns; IRS issued deficiencies denying the exemptions and credits to George.
The Tax Court granted the Commissioner’s motion for partial summary judgment, holding that S.S. was not a qualifying child of Ms. George under IRC 152(e) for 2007–2008, so George was not entitled to the dependency exemption or the child tax credit.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether S.S. was a qualifying child of George under 152(e) for 2007–2008.	George contends Form 8332 should be disregarded due to compulsion and erroneous state orders.	George’s Form 8332 is valid; S.S. was not George’s qualifying child under 152(e).	S.S. was not a qualifying child; George is not entitled.
Whether signing Form 8332 under compulsion invalidates the release.	Duress from court compulsion invalidates the release.	Compulsion does not render the release void; she was bound by law.	Duress not established; release valid.
Whether the Fairfax County order’s alleged errors affect the Form 8332's validity.	Order was erroneous; it should be corrected to revoke the Form 8332.	State-court corrections are not reviewable by the Tax Court; 152(e) aims for certainty.	Court declines to examine State court order; Form 8332 binding under 152(e).
Whether noncustodial parent’s arrears affect the validity of the release.	Noncompliance by John excuses George from the consequences of the release.	Arrearages do not affect the release’s validity; 152(e) criteria satisfied by the written declaration.	Arrearages do not affect the release; 152(e) intact.
Whether George is entitled to a child tax credit for S.S.	If S.S. were George’s qualifying child, she would be entitled to the credit.	Since S.S. is not a qualifying child under 152, no credit.	No child tax credit for S.S.

King v. Commissioner, 121 T.C. 245 (2003) (ties resolved; 152(e) effect on noncustodial claims clarified)