Frederick Leroy McGee, Jr. - Page 7




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          entitled to claim two dependency exemption deductions because the           
          custody order provided equal placement of the children.                     
               For the years at issue, respondent disallowed the dependency           
          exemption deductions because petitioner failed to establish that            
          he was entitled to the exemptions.  Respondent further determined           
          that petitioner’s filing status was single, not head of                     
          household, and also disallowed the earned income credits.                   
               The determinations of the Commissioner in a notice of                  
          deficiency are presumed correct, and the burden is on the                   
          taxpayer to show that the determinations are incorrect.  Rule               
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).4                      
          Dependency Exemption                                                        
               Section 151(c) allows a taxpayer to deduct an annual                   
          exemption amount for each dependent of the taxpayer.  Section               
          152(a)(1) defines the term “dependent” to include a taxpayer’s              
          child, provided that more than half of the child’s support was              
          received from the taxpayer during the calendar year.  However,              
          special rules apply in the case of a child of divorced parents.             
          See sec. 152(e).                                                            
               Pursuant to section 152(e)(1), if a child receives over half           



               4    Sec. 7491 does not apply in this case to shift the                
          burden of proof to respondent because petitioner neither alleged            
          that sec. 7491 was applicable nor established that he fully                 
          complied with the substantiation requirements of sec.                       
          7491(a)(2)(A).                                                              





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