Charles J. Dugan - Page 12

                                       - 12 -                                         
               "filed" a substitute return under section 6020(b), in                  
               which filing status has been "elected" by respondent.                  
               To hold otherwise would be to cede jurisdiction as to                  
               the determination of filing status in all cases where                  
               no return has been filed to respondent for his absolute                
               and final determination. * * *                                         
          Based on the foregoing analysis, we conclude that petitioner is             
          not prohibited from claiming joint return status.  Since the                
          parties agree that petitioner and his wife, Diane Dugan, intended           
          to file a joint return for the taxable year 1991 by the                     
          submission of the amended return on March 30, 1995, petitioner              
          and his wife are entitled to joint filing status.                           
          Issue 3.  Dependency Exemptions                                             
               The question presented is whether petitioner is entitled to            
          dependency exemption deductions for his two daughters on the 1991           
          amended joint return.  Respondent disallowed the exemptions on              
          the basis that petitioner had not demonstrated that his two                 
          daughters resided with him and that he supported them.                      
          Petitioner contends that he is entitled to the claimed deduction            
          because he provided all financial support for the children.                 
               Deductions are strictly a matter of legislative grace, and             
          petitioner bears the burden of proving that he is entitled to any           
          deduction claimed.  Rule 142(a); New Colonial Ice Co. v.                    
          Helvering, 292 U.S. 435 (1934).  This includes the burden of                
          substantiation.  Hradesky v. Commissioner, 65 T.C. 87, 90 (1975),           
          affd. per curiam 540 F.2d 821 (5th Cir. 1976).                              







Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011