* The Administration's fiscal-year 2007 revenue proposals include several provisions to solve some of the UDOC's problems and issues.
As established by the Working Families Tax Relief Act of 2004, the uniform definition of a child (UDOC) provides a definition for five different child-based benefits.
The inclusion of a uniform definition of a child (UDOC) as part of the Working Families Tax Relief Act of 2004 (WFTRA) (1) represented the culmination of simplification efforts in the area of family taxation by the Bush Administration, the Joint Committee on Taxation (JCT), Treasury, the National Taxpayer Advocate (NTA) and professional organizations, including the AICPA, the American Bar Association (ABA) and the Tax Executives Institute (TEI).
152(a), taxpayers may claim exemptions for two groups of individuals: (1) qualifying children as defined under the UDOC and (2) qualifying relatives as defined under the "old" dependency rules, which include the five tests (gross income, support, relationship, joint return and citizen ship tests).
In Example 6 above, in addition to affecting the dependency exemption, the UDOC also introduces some new planning possibilities for the EITC.