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permission to care for their children and to claim those children
as dependents.
Respondent issued a notice of deficiency determining that
petitioner is not entitled to claim head of household filing
status, dependency exemption deductions, or earned income credits
for 1997 because she failed to substantiate her claims.
Discussion
Deductions are a matter of legislative grace, and taxpayers
must maintain adequate records to substantiate the amount of any
deductions or credits claimed. Sec. 6001; INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); sec. 1.6001-1(a), Income
Tax Regs. Taxpayers generally bear the burden of proving that
the Commissioner’s determinations are incorrect. Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933). Section 7491 does
not apply because petitioner has failed to substantiate her
deductions and provide credible evidence.
1. Dependency Exemption Deductions
Section 151(c) allows a taxpayer to deduct an exemption
amount for each "dependent" as defined in section 152. As
relevant here, section 152(a) defines a dependent to include a
son or daughter of a sibling of the taxpayer or an individual,
other than a spouse, whose principal place of abode is the home
of the taxpayer and who is a member of the taxpayer's household
"over half of whose support, for the calendar year in which the
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