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determining that petitioner is not entitled to deductions for
dependency exemptions, head of household filing status, and
earned income credit because he failed to provide substantiation
for his claims.
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
tax liability. The Court finds that the burden of proof does not
shift to respondent because petitioner has failed to comply with
the requirements of section 7491(a)(1).
Under section 32, an eligible individual is allowed a credit
which is calculated as a percentage of the individual's earned
income. Sec. 32(a)(1). Section 32(a)(2) and (b) limits the
credit allowed based on whether the eligible individual has no
qualifying children, one qualifying child, or two or more
qualifying children.
Initially, petitioner argues that because he treated Ashton
and Marquin similarly on previous unchallenged returns, his
consistent treatment should not now be questioned. Each taxable
year, however, stands alone, and the Commissioner may challenge
in a succeeding year what was condoned or agreed to in a former
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Last modified: May 25, 2011