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Respondent issued a notice of deficiency determining that
petitioners were subject to the alternative minimum tax
prescribed by section 55 on account of the number of dependency
exemptions claimed for their children. Petitioners filed a
timely petition for redetermination of the deficiency and later
amended their petition.2 In respondent’s answer to petitioners’
amendment to their petition, respondent challenged petitioners’
entitlement to dependency exemption deductions for their children
because of petitioners’ failure to provide SSN’s for their
children, and respondent asserted an increased deficiency and an
increased addition to tax under section 6662(a). Resolution of
the dependency exemption issue in favor of respondent will
resolve the alternative minimum tax issue; if petitioners are not
entitled to the dependency exemptions, they are not subject to
the alternative minimum tax.
Discussion
Taxpayers are entitled to claim an exemption for each child
who qualifies as a dependent under sections 151 and 152. Section
151(e) provides: “No exemption shall be allowed under this
section with respect to any individual unless the TIN of such
2 By order dated August 4, 1999, the Court construed
petitioners’ amendment to make a claim for an overpayment of tax
for tax year 1997.
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Last modified: May 25, 2011