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Background
As a preliminary matter, we note that petitioner’s motion
for an award of costs arises in the context of a deficiency
action in which the only taxable year in issue is 1999.
Nevertheless, the theory behind petitioner’s motion requires that
we also consider the taxable year 1998.
A. Petitioner
Petitioner is a low-income individual who, during 1998 and
1999, worked as a “nail technician” (a manicurist) in various
“nail salons” in northern Virginia. Petitioner is the daughter
of Tra Thi Nguyen (Mrs. Nguyen); petitioner is also the single
parent of a son, Hai Minh Huynh (Hai), who was born in 1990.
B. Petitioner’s Tax Return for 1998
In February 1999, petitioner filed a U.S. Individual Income
Tax Return, Form 1040, for the taxable year 1998. On her return,
petitioner claimed: (1) Head of household filing status; (2) the
standard deduction for that filing status; (3) dependency
exemptions for Mrs. Nguyen and Hai; and (4) an earned income
credit based on her son as a “qualified child”. Petitioner also
claimed a refund of tax in the amount of $1,609.
Petitioner’s 1998 return was selected for examination. By
letter dated April 23, 1999, respondent proposed to: (1) Change
petitioner’s filing status from head of household to single (and
allow only the standard deduction for the latter filing status);
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