I guess I don't see Publication 501 reading that way. The only thing I see that would pertain is "Children usually are citizens or residents of the country of their parents", but to me the word "usually" means it is definitely not a an automatic rule.
There is IRS documentation that shows that if the parents are making the First Year Choice, they have the OPTION to have the child make the First Year Choice. To me, that means the child's residency is NOT automatically whatever the parents' are.
But you do have a good point about newborns.
Perhaps @pk may have some insight on the matter.
