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Issue (4): Additional Exemption for Mr. Mischel
If a joint return is not filed, an exemption for a
taxpayer's spouse is allowable under section 151(b) only if the
spouse has no gross income and is not the dependent of another
taxpayer. For the reasons discussed in issue (6) infra, the
issue regarding the exemption for Mr. Mischel is moot.
Issue (5): Earned Income Credit
As relevant herein, section 32(d) provides that a married
individual is entitled to the earned income credit only if a
joint return is filed. Because petitioner did not file a joint
return, she is not entitled to an earned income credit.
Issue (6): Addition to Tax Under Section 6651(a)(1)
Section 6651(a)(1) imposes an addition to tax if a taxpayer
fails to file a timely return, unless the taxpayer's failure is
due to reasonable cause and not due to willful neglect. The
addition is based on the amount required to be shown as tax on
the return.
Petitioner is not liable for the addition to tax under
section 6651(a)(1) because the amount required to be shown as tax
on her return was zero. The following calculation shows why this
is true:
Income $9,626.50
Less: standard deduction -3,000.00
$6,626.50
Less: personal exemption -2,300.00
$4,326.50
Less: dependency exemptions -6,900.00
Taxable income -0-
Tax -0-
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Last modified: May 25, 2011