Diego Francisco - Page 4

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          additional child tax credit, the head of household filing status,           
          and the full amount of the earned income credit.  Respondent has            
          since stipulated that petitioner is entitled to the three                   
          dependency exemption deductions and the additional child tax                
          credit.                                                                     
               Petitioner bears the burden of proving that respondent’s               
          determination is incorrect.1  Rule 142(a).  It is well                      
          established that the Court is not bound to accept at face value             
          the self-serving testimony of a taxpayer or his or her close                
          relatives or intimates.  See, e.g., Tokarski v. Commissioner, 87            
          T.C. 74, 77 (1986).  Additionally, a taxpayer is required to                
          maintain permanent books of account or records sufficient to                
          establish the amount of his or her gross income, deductions,                
          credits, or other matters required to be shown on his or her tax            
          return.  Sec. 6001; sec. 1.6001-1(a), Income Tax Regs.                      
          Petitioner has failed to substantiate the claims set forth in his           
          tax return, has failed to maintain books and records of his                 
          relevant activities, and has failed to introduce credible                   
          evidence to support his factual allegations.  Sec. 6001; sec.               
          1.6001-1(a), Income Tax Regs.                                               
               The first issue for decision is whether petitioner is                  
          entitled to head of household filing status.  Section 2(b)                  

               1  Petitioner has not satisfied the requirements of sec.               
          7491(a); consequently, sec. 7491(a) does not shift the burden of            
          proof to respondent.                                                        





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