- 6 - 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).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011