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C. Whether Petitioner Is Entitled to the Earned Income Credit
for 1999 and 2000
An individual may be eligible for an earned income tax
credit. Sec. 32(a)(1). An eligible individual is one who
either: (1) Has a qualifying child as defined by section
32(c)(3)(A), or (2) meets the requirements of section
32(c)(1)(A)(ii).
For the 1999 tax year, the earned income credit is
completely phased out for an individual with more than one
qualifying child if the taxpayer’s earned income and adjusted
gross income exceed $30,580. Sec. 32(a)(2); Rev. Proc. 98-61,
1998-2 C.B. 811, 814. Petitioner’s earned income and adjusted
gross income were $52,444 in 1999. For the 2000 tax year, the
earned income credit is completely phased out for an individual
with more than one qualifying child if the taxpayer’s adjusted
gross income exceeds $31,152. Sec. 32(a)(2); Rev. Proc. 99-42,
1999-2 C.B. 568. Petitioner’s earned income and adjusted gross
income in 2000 were $44,185. Petitioner is therefore not
entitled to the earned income credit for 1999 or 2000.
D. Whether Petitioner Is Liable for the Accuracy-Related
Penalty for 1999 and 2000
Section 7491(c) places on the Commissioner the burden of
producing evidence that it is appropriate to impose additions to
tax. To meet this burden, the Commissioner must produce evidence
showing that it is appropriate to impose the particular addition
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Last modified: May 25, 2011