115 STAT. 56 PUBLIC LAW 107-16^JUNE 7, 2001 26 USC 32. (1) IN GENERAL.— Clause (i) of section 32(c)(3)(B) (relating to relationship test) is amended to read as follows: "(i) IN GENERAL.— An individual bears a relationship to the taxpayer described in this subparagraph if such individual is— "(I) a son, daughter, stepson, or stepdaughter, or a descendant of any such individual, "(II) a brother, sister, stepbrother, or stepsister, or a descendant of any such individual, who the taxpayer cares for as the taxpayer's own child, or "(III) an eligible foster child of the taxpayer.". (2) ELIGIBLE FOSTER CHILD. — (A) IN GENERAL.— Clause (iii) of section 32(c)(3)(B) is amended to read as follows: "(iii) ELIGIBLE FOSTER CHILD.— For purposes of clause (i), the term 'eligible foster child' means an individual not described in subclause (I) or (II) of clause (i) who— "(I) is placed with the taxpayer by an authorized placement agency, and "(II) the taxpayer cares for as the taxpayer's own child.". (B) CONFORMING AMENDMENT.— Section 32(c)(3)(A)(ii) is amended by striking "except as provided in subparagraph (B)(iii),". (f) 2 OR MORE CLAIMING QUALIFYING CHILD. —Section 32(c)(1)(C) is amended to read as follows: "(C) 2 OR MORE CLAIMING QUALIFYING CHILD.— "(i) IN GENERAL. —Except as provided in clause (ii), if (but for this paragraph) an individual may be claimed, and is claimed, as a qualifying child by 2 or more taxpayers for a taxable year beginning in the same calendar year, such individual shall be treated as the qualifying child of the taxpayer who is— "(I) a parent of the individual, or "(II) if subclause (I) does not apply, the taxpayer with the highest adjusted gross income for such taxable year. "(ii) MORE THAN i CLAIMING CREDIT.—If the parents claiming the credit with respect to any qualifying child do not file a joint return together, such child shall be treated as the qualifying child of— "(I) the parent with whom the child resided for the longest period of time during the taxable year, or "(II) if the child resides with both parents for the same amount of time during such taxable year, the parent with the highest adjusted gross income.". (g) EXPANSION OF MATHEMATICAL ERROR AUTHORITY.— Paragraph (2) of section 6213(g) is amended by striking "and" at the end of subparagraph (K), by striking the period at the end of subparagraph (L) and inserting ", and", and by inserting after subparagraph (L) the following new subparagraph:
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