Ronald A. Horton - Page 9

                                        - 8 -                                         
         tax case such as this, no Answer is required.  See Rule 173(b).              
         Accordingly, respondent’s position for the purposes of the motion            
         is the position maintained by respondent during the pendency of              
         this case.  We note that respondent’s position, specifically that            
         petitioner was not entitled to head-of-household filing status,              
         the earned income credit, and the dependency exemption deduction,            
         was the same in both the administrative and the judicial                     
              Section 151(c) allows a taxpayer to deduct an annual                    
         exemption amount for each dependent.  Section 152(a) defines a               
         “dependent” to include a taxpayer’s child, provided that more                
         than half of the child’s support was received from the taxpayer              
         during the calendar year.  Under section 152(e)(1), if a child               
         receives over half of his support during the calendar year from              
         divorced parents, and such child is in the custody of one or both            
         parents for more than one-half of the calendar year, then such               
         child is treated for purposes of section 152(a) as receiving over            
         half the support from the parent having custody for a greater                
         portion of the calendar year, regardless of which parent actually            
         provided the support.                                                        
              Petitioner contends that since the May 2004 letter directed             
         respondent to use information previously submitted for the 2002              
         taxable year, respondent had a basis to “resolve” the examination            
         for the 2003 taxable year.  We disagree.  The documents submitted            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011