April Lennett Webb-Reed - Page 4

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               Ms. Hardeman provided respondent with a written statement              
          that petitioner was the guardian of the children.  In that same             
          statement, Ms. Hardeman admitted that the children’s school                 
          records indicate that Ms. Hardeman is their mother and show her             
          address as the children’s address.  Petitioner does not have any            
          legal documents showing that she had legal guardianship of the              
          children.                                                                   
               Petitioner, who resided in the home of her former husband’s            
          grandmother, did not provide any testimony or evidence regarding            
          sums she may have spent to care for Eric and Cassandra.                     
          Additionally, petitioner was not employed from October 1999                 
          through the end of the year because she had been injured.                   
               Respondent issued a notice of deficiency determining that              
          petitioner is not entitled to claim head of household filing                
          status, the dependency exemption deductions, or any of the                  
          credits applicable to the children for 1999 because she failed to           
          substantiate her claims.                                                    
                                     Discussion                                       
               Deductions are a matter of legislative grace, and taxpayers            
          must maintain adequate records to substantiate the amounts 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);              






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