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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
sustained.
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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