-6-
Charlton contends that the unclaimed Medi-Task deductions are not
“items giving rise to the deficiency” because unclaimed
deductions reduce, and do not cause, a deficiency. Charlton
points out that we said in Charlton v. Commissioner, supra at
341, that “The only Medi-Task item causing a deficiency in this
case is omitted income.”
Consistent with the requirement that we allocate items under
section 6015(c) as if the spouses had filed separate returns, see
section 6015(d)(3)(A), we believe “items giving rise to the
deficiency” include items that affect the calculation of the
deficiency. We conclude that the unclaimed Medi-Task deductions
are “items giving rise to the deficiency” for purposes of section
6015(d) and that the separate return rule applies under section
6015(d)(3)(A).
Married individuals who file separate returns must each
report their own income and deductions.5 See Commissioner v.
Culbertson, 337 U.S. 733, 739-740 (1949) (“income must be taxed
to him who earns it”); Deputy v. duPont, 308 U.S. 488, 493-494
(1940) (taxpayer must deduct own expense and not that of
paragraphs (4) and (5), any item giving rise to a
deficiency on a joint return shall be allocated to
individuals filing the return in the same manner
as it would have been allocated if the individuals
had filed separate returns for the taxable year.
5 See discussion of married individuals filing separate
returns, 4 Bittker & Lokken, Federal Taxation of Income, Estates
and Gifts, par. 111.3.2, at 111-64 and 111-65 (2d ed. 1992).
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