- 8 -
of 13 and for whom the taxpayer may claim an exemption under section
151 (c) , or a dependent or spouse of the taxpayer who is mentally
or physically incapable of caring for himself or herself. Sec. 21
(b) (1) (A) and (B). Section 21 (e) (9) provides that a child care
credit is not allowed for an amount paid to any person unless the
name, address, and taxpayer identification number of such person is
included on the return claiming the credit or the taxpayer has
exercised due diligence in attempting to provide the information.
On both their 1990 and 1991 tax returns, petitioners claimed
(for each year) a child care credit of $960 . The returns indicate
that for 1990 the care provider was "Day Care Center" and for 1991
"Full Gospel Church".
Mrs. Walker testified that while she was at work: (1)
Petitioners paid Myrtle Brill, a neighbor of her stepdaughter,
approximately $50 every 2 weeks to watch the children; (2) the
method of payment to the neighbor was cash; and (3) Myrtle Brill
died prior to the date of, trial. Petitioners did not present
receipts for the cash payments. Petitioners failed to substantiate
the alleged child care payments. They offered no explanation of the
discrepancy between the identity of the care provider as reported on
the tax returns and that to which Mrs. Walker testified. Petitioners
would not be entitled to the claimed child care credits in any event
because the children to whom the care was allegedly provided were
not dependents of petitioners. Accordingly, respondent's
determination with respect to this issue is sustained.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011