Fernando D. Rivera - Page 3




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          should not be cited as authority.                                           
               Respondent determined a deficiency of $3,726 in petitioner's           
          1997 Federal income tax and a section 6651(a)(1) addition to tax            
          of $108.15.  The issues for decision are:  (1) Whether petitioner           
          is entitled to claim dependency exemption deductions for his                
          three nephews; (2) whether petitioner qualifies as a head of                
          household; (3) whether petitioner is entitled to an earned income           
          credit; and (4) whether petitioner is liable for the section                
          6651(a)(1) addition to tax.                                                 
          Background                                                                  
               Some of the facts have been stipulated and are so found.               
          At the time that the petition was filed, petitioner resided in              
          Kokomo, Indiana.                                                            
               During 1997, petitioner lived in a house owned by his                  
          mother.  He did not pay any rent to live there, but he did pay,             
          or contribute to, the cost of certain utilities.  The house has             
          four bedrooms, one of which was used exclusively by petitioner’s            
          mother.  Another bedroom was used by petitioner and, from time to           
          time during 1997, petitioner’s brother.  The remaining two                  
          bedrooms were shared by three of petitioner’s nephews                       
          (petitioner’s nephews), all of whom lived in petitioner’s                   
          mother’s house throughout 1997.                                             
               In 1991, petitioner’s nephews were abandoned by their                  
          parents (petitioner’s sister and former brother-in-law), and they           






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