Keith R. and Christine M. Vogt - Page 7

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          gross income in an examination of their Federal income tax return           
          by the IRS.  Unfortunately, however, each taxable year stands               
          alone, and the IRS may challenge in a succeeding year what was              
          condoned or agreed to in a former year.  Boatner v. Commissioner,           
          T.C. Memo. 1997-379 (citing Auto. Club v. Commissioner, 353 U.S.            
          180 (1957)), affd. 164 F.3d 629 (9th Cir. 1998).  Thus,                     
          taxpayers’ returns must be in accord with the law even though the           
          Commissioner may have previously accepted a position not in                 
          accordance with the law.  In addition, the Commissioner is not              
          bound by an agent’s representations.  Bornstein v. United States,           
          170 Ct. Cl. 576, 345 F.2d 558 (1965).  Authoritative tax law is             
          contained in statutes, regulations, and judicial decisions.                 
          Zimmerman v. Commissioner, 71 T.C. 367 (1978), affd. 614 F.2d               
          1294 (2d Cir. 1979).  In accordance with the above discussion of            
          the nature of the IHSS payments, the Court concludes that these             
          payments constitute gross income.  Respondent, therefore, is                
               The last issue is petitioners’ claim to the earned income              
          credit under section 32 for NV and another son on their 2001                
          income tax return.  At trial, respondent agreed each of                     
          petitioners’ children was a qualifying child with regard to the             
          age, residency, and relationship tests of section 32.  Respondent           
          disallowed the credit due to the income limitation.  Sec.                   
          32(b)(2).  Respondent stated, at trial, that the earned income              

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