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Cir. 1991), affg. an unpublished decision of this Court; Sher v.
Commissioner, supra at 134-135; see sec. 7430(c)(7)(A).
Ordinarily, we consider the reasonableness of each of these
positions separately in order to allow the Commissioner to change
his position. Maggie Mgmt. Co. v. Commissioner, supra at 442
(citing Huffman v. Commissioner, 978 F.2d 1139, 1144-1147 (9th
Cir. 1992), affg. in part and revg. in part on another ground
T.C. Memo. 1991-144). In the present case, however, we need not
follow this approach because respondent’s position was
essentially the same in the administrative and court proceedings.
See Maggie Mgmt. Co. v. Commissioner, supra at 442. More
specifically, respondent’s position was that petitioner had
failed to substantiate his entitlement to head of household
filing status (and the standard deduction for that filing status)
and dependency exemption deductions, earned income credit, and
child tax credit in respect of his children.
Deductions and credits are matters of legislative grace.
New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934);
Segel v. Commissioner, 89 T.C. 816, 842 (1987). The same may be
said of a tax-favored filing status such as head of household.
See D’Anjou v. Commissioner, T.C. Memo. 1992-138. Taxpayers are
required to substantiate the deductions and credits that they
claim by maintaining records necessary to establish both the
taxpayers’ entitlement to such items and the proper amount
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