An inter-office memorandum at the Internal Revenue Service:

TO: Richard Poprick, Customer Service Division FROM: George Baker, Assistant to the Branch Chief SUBJECT: Support for Kidnapped Child WTA-N-108040-00

Your memorandum raises the following issues:

1. Can the parents of a minor child who was kidnapped by a person not related to the child take a dependency exemption for the child in the year of the kidnapping if the child is missing at the end of the year?

2. Can the parents continue to take the exemption in later years if the parents maintain a room for the child and incur expenses to search for the child?

Under section 152(a) of the Internal Revenue Code, the term "dependent" generally includes a child of a taxpayer if the taxpayer provided over half of the child's support for the calendar year in which the taxable year of the taxpayer begins.

Section 1.152-1(a)(2)(I) of the Income Tax Regulation defines the term "support" by example. It states that support "includes food, shelter, clothing, medical and dental care, education, and the like."

In the absence of any legal authority directly on point, we conclude that the parents should be presumed to meet the support test established by section 152(a) if, before the kidnapping, the parents provided half of the support for the child. Proof of total support for the period before the kidnapping and proof that the parents provided over half that support should suffice.

For taxable years after the year of the kidnapping, although the issue is not free from doubt, we do not think that the parents meet the support test of section 152(a). Even if the parents continue to maintain a room for the child and continue to expend funds searching for the child, we do not think that these expenses constitute support.

If you have any questions please contact me.

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