- 4 - withholding or estimated tax payments, but she did claim an earned income credit in the amount of $3,556 and requested that such amount be refunded to her as an overpayment of tax. For 1996, the maximum allowable amount of the earned income credit was $3,556. See sec. 32(a)(1) and (b).3 OPINION Petitioner bears the burden of proof in this case. See Rule 142(a); INDOPCO Inc. v. Commissioner, 503 U.S. 79, 84 (1992); Welch v. Helvering, 290 U.S. 111, 115 (1933); cf. sec. 7491 as effective for court proceedings arising in connection with examinations commencing after July 22, 1998.4 In order to be entitled to an earned income credit, petitioner is therefore obliged to prove that she had earned income in 1996. Section 32 provides for an earned income credit. In order to be entitled to an earned income credit, the taxpayer must satisfy a number of requirements. One of the requirements is that the taxpayer have earned income. See sec. 32(a)(1). Without earned income, there is no earned income credit.5 3 All section references are to the Internal Revenue Code in effect for the taxable year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. 4 The notice of deficiency in this case was issued on Jan. 22, 1998. Accordingly, sec. 7491 has no application to this case. 5 Sec. 32(a)(1) provides in relevant part that “there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of (continued...)Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011