Austin Eugene Chandler, Jr. - Page 4




                                        - 3 -                                         
               Respondent asserts that petitioner is not entitled to the              
          claimed EIC with respect to a qualifying child because during the           
          tax year Kenesha was living in the same household as Mrs.                   
          Chandler, whose modified adjusted gross income was greater than             
          petitioner’s.  A transcript of account for the tax year 1999                
          reflects Mrs. Chandler’s modified gross income of $60,327.                  
          Discussion                                                                  
               The burden of proof is on petitioner.  Rule 142(a)(1).3                
               Section 32(a) provides that an “eligible individual” may be            
          allowed an EIC equal to the credit percentage as provided in                
          section 32(b).  The term “eligible individual” includes a                   
          taxpayer who has a qualifying child for the taxable year.  Sec.             
          32(c)(1)(A)(i).                                                             
               A “qualifying child” includes a child who satisfies a                  
          relationship test to the taxpayer, has the same principal place             
          of abode as the taxpayer for more than one-half of the taxable              
          year, and has not attained age 19.  Sec. 32(c)(3)(A), (B), and              
          (C).  The relationship test is satisfied if the qualifying child            
          is a daughter of the taxpayer or a descendant of the taxpayer.              
          Sec. 32(c)(3)(B)(i)(I).                                                     



               3  Sec. 7491 does not apply to shift the burden of proof to            
          respondent because petitioner has neither alleged that sec. 7491            
          is applicable nor established that he complied with the                     
          requirements of sec. 7491(a)(2)(A) and (B) to substantiate items,           
          maintain required records, and fully cooperate with respondent’s            
          reasonable requests.                                                        





Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011