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Discussion
Respondent's determinations in the notices of deficiency are
presumed correct, and generally, petitioners bear the burden of
proving that respondent's determination of income tax
deficiencies is incorrect. See Rule 142(a); Welch v. Helvering,
290 U.S. 111, 115 (1933). Under section 7491, the burden of
proof with respect to factual issues relevant to ascertaining the
tax liability of the taxpayer may shift to the Commissioner in
certain circumstances. See Prince v. Commissioner, T.C. Memo.
2003-247. The issues in these cases are questions of law, and
the Court decides the issues without regard to the burden of
proof.
Dependency Exemption Deductions
There is no dispute that the three children of petitioners
are "dependents" as defined in section 152 and that each of the
children received, during the year at issue, over half of his or
her support from their parents. Where the parents are divorced
and the children are in the custody of one or both parents for
more than one-half of the calendar year, section 152(e)(1) allows
the dependency exemption deductions to the "custodial parent".
Section 1.152-4(b), Income Tax Regs., provides generally that the
custodial parent is determined by the most recent decree of
divorce in effect between the parties. In these cases, there is
no dispute that Ms. Spanier was the custodial parent for the
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Last modified: May 25, 2011