- 3 - Respondent, unable to determine which parent was entitled to the earned income credit, issued "whipsaw" notices of deficiency for the 1995 and 1996 tax years to petitioner and Mr. Sherbo.1 The notices of deficiency disallowed the earned income credit to both petitioner and Mr. Sherbo. Petitioner filed a timely petition objecting to the notices of deficiency and seeking a redetermination. Mr. Sherbo defaulted on the notices of deficiency for 1995 and 1996. The Appeals officer assigned to petitioner's case thereafter recommended that petitioner be allowed the earned income credit for both 1995 and 1996 as claimed on her tax returns on the basis that Mr. Sherbo could no longer claim earned income credit for either of the years in issue. On April 12, 1999, pursuant to the stipulation of the parties, the Court entered an agreed decision reflecting that no deficiencies or overpayments are due. On May 6, 1999, petitioner filed a Motion to Vacate Decision and lodged a Motion for Award of Attorney's Fees. On May 10, 1999, the Court issued an Order granting petitioner's Motion to Vacate Decision, ordering the 1 By issuing notices of deficiency to both petitioner and Mr. Sherbo, respondent has ensured the comprehensive resolution of petitioner and her former husband's inconsistent treatment of the qualifying children and the resulting earned income credits. See Wickert v. Commissioner, T.C. Memo. 1986-277, affd. 842 F.2d 1005 (8th Cir. 1988); Deutsch v. Commissioner, T.C. Memo. 1997- 470 n.4.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011