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Petitioner claimed dependency exemption deductions for
Deont� and Junior on his 1997 Federal income tax return. He also
claimed head of household filing status and an earned income
credit as an eligible individual with two or more qualifying
children. Respondent issued a notice of deficiency determining
that petitioner was not entitled to the dependency exemption
deduction for Junior, head of household filing status, and earned
income credit because he failed to provide substantiation for his
claims.
The first issue we address is whether petitioner is entitled
to a dependency exemption deduction for Junior. Deductions are
strictly a matter of legislative grace, and taxpayers must
satisfy the specific requirements for any deduction claimed. See
INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).
Taxpayers are required to maintain records sufficient to
substantiate their claimed deductions. See sec. 6001; sec.
1.6001-1(a), Income Tax Regs.
Taxpayers generally bear the burden of proving that the
Commissioner’s determination is incorrect. Rule 142(a); Welch v.
Helvering, 290 U.S. 111 (1933). Under section 7491(a)(1),
however, the burden of proof shifts to the Commissioner if, among
other requirements, the taxpayer introduces “credible evidence
with respect to any factual issue relevant to ascertaining” his
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