Dawson Craig Lane - Page 10

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          respect to the instant case.  That letter stated in pertinent               
                    This is in response to the issues you raised at                   
               our recent conference and in your letter dated March 1,                
                  *       *       *       *       *       *       *                   
               Taxpayer Identification Number                                         
                    As you know, the IRS disallowed the dependency                    
               exemptions you claimed for your two children on your                   
               2001 return.  You take the position that these exemp-                  
               tions should be allowed, and that, in addition, you                    
               should be allowed to claim the child tax credit pro-                   
               vided by I.R.C. � 24.  During our conference, the                      
               undersigned correctly informed you that no such exemp-                 
               tions or credit could be allowed unless you obtained                   
               social security numbers (“SSN”), for your children and                 
               provided those SSN to the IRS.  You refuse to obtain or                
               provide such SSN.                                                      
                    I.R.C. � 151(e) provides that no dependency exemp-                
               tion is allowable “with respect to any individual                      
               unless the TIN of such individual is included on the                   
               return claiming the exemption.”  See I.R.C. �                          
               7701(a)(41) (defining “TIN” as “the identifying number                 
               assigned to a person under section 6109”).  Similarly,                 
               I.R.C. � 24(e) disallows any child tax credit “with                    
               respect to any qualifying child unless the taxpayer                    
               includes the name and taxpayer identification number of                
               such qualifying child on the return of tax for the                     
               taxable year.”                                                         
                    In your March 1, 2005, letter, you take the posi-                 
               tion that the TIN required by the above statutes need                  
               not be an SSN, and can be a TIN assigned by the IRS.                   
               With that letter, you included two altered IRS Forms W-                
               7 (Application for IRS Individual Taxpayer Identifica-                 
               tion Number) requesting that the IRS assign TIN to your                
               children.  You altered these Forms W-7 by marking                      
               through both the word “Individual” in the caption, and                 
               the words “resident alien” beside “Dependent of U.S.                   
               citizen” beside block d. found in the “Reason you are                  
               submitting Form W-7” section.  Your legal position                     
               concerning the use of EIN other than SSN is incorrect.                 

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Last modified: May 25, 2011