James T. Redman - Page 4

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               On his 1998 Federal income tax return, petitioner claimed              
          head-of-household filing status.  Petitioner reported wage income           
          of $5,352 and unemployment compensation of $1,100.  He also                 
          claimed the earned income credit of $1,828, with Justice as a               
          qualifying child.                                                           
               Respondent issued petitioner a notice of deficiency dated              
          November 3, 2000, determining that:  (1) Petitioner was not                 
          entitled to head-of-household filing status, and (2) petitioner             
          was not entitled to claim Justice as a qualifying child with                
          respect to the earned income credit.2  Respondent contends that             
          petitioner did not maintain the principal place of abode for                
          Justice for more than one-half of the 1998 taxable year.  Rather,           
          respondent contends that Kim Lake did so.                                   
               Petitioner contends that the Monongalia County court order,            
          which granted petitioner 40 percent joint custody, does not apply           
          to the 1998 taxable year.  Petitioner contends that he and Kim              
          Lake had a separate arrangement for 1998 in which he would have             
          custody of Justice for half the week throughout the year, but               
          that there was no set schedule under this arrangement.                      

               2  In the notice of deficiency, respondent also determined             
          that petitioner was not entitled to a claimed dependency                    
          exemption with respect to Justice.  However, as previously                  
          indicated, respondent conceded this issue at the time of trial.             

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