Juan Vega - Page 6




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          Name           Relationship      Notice Date          ITIN                  
          Benjamin Vega           father         Aug. 9, 1999     979-xx-xxxx         
          Margarita Campos        mother         Aug. 9, 1999     979-xx-xxxx         
          Jose De Jesus Vega      brother        Oct. 14, 1999    983-xx-xxxx         
          Rafael Vega             brother        Sept. 20, 1999   983-xx-xxxx         
          Cleofas Gabriela Vega   sister         July 9, 1999     980-xx-xxxx         
          Liliana Margarita Vega  sister         Mar. 6, 2000     990-xx-xxxx         

               In June 2000, respondent’s Appeals Office in Laguna Niguel,            
          California, issued a notice of deficiency to petitioner                     
          determining deficiencies in his Federal income taxes for 1996 and           
          1997.  The explanation of adjustments in the notice of                      
          deficiency, together with the Appeals Office narrative, indicates           
          that petitioner satisfied all but one of the requirements for the           
          allowance of dependency exemptions, namely, that the taxpayer               
          include on the taxpayer’s return the identifying number of each             
          individual who is claimed as a dependent.                                   

                                       OPINION                                        
               As a preliminary matter, we note that deductions are                   
          strictly a matter of legislative grace, and a taxpayer must                 
          satisfy the specific requirements for any deduction claimed.  See           
          New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).                
          Issue (1):  Dependency Exemptions                                           
               A taxpayer is entitled to a deduction for an exemption for             
          each individual who qualifies as the taxpayer’s dependent under             
          sections 151 and 152.  Secs. 151(a), (c), and 152.  However,                
          section 151(e) limits this allowance by providing that “No                  
          exemption shall be allowed under this section with respect to any           





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