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established that he has complied with the requirements of section
7491(a).
Itemized Deductions
Respondent determined that petitioner is not entitled to
$243 of the $34,881 claimed as total itemized deductions on his
2000 income tax return. This determination was made pursuant to
section 67, which provides that “miscellaneous itemized
deductions for any taxable year shall be allowed only to the
extent that the aggregate of such deductions exceeds 2 percent of
adjusted gross income.” Sec. 67(a). On the 2000 income tax
return, petitioner claimed miscellaneous itemized deductions of
$34,663 before the section 67 reduction. Petitioner’s adjusted
gross income for the 2000 taxable year increased from $50,921 to
$63,059, the difference being solely attributable to the
additional wages of $12,138 that petitioner failed to report on
the 2000 income tax return.3 Because of this difference, the 2-
percent floor on miscellaneous itemized deductions under section
67 was “raised” by $243. We conclude that respondent has
correctly computed this adjustment.
We note that respondent’s determination with respect to
itemized deductions was based upon the 2000 income tax return and
not the amended return. While petitioner has claimed additional
3 As indicated, petitioner reported this amount on his
amended return.
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Last modified: May 25, 2011