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qualifying children and a child tax credit with KO and NW as
qualifying children.
On the face of his Form 1040, petitioner claims that these
children are his foster children. However, petitioner is not
related to either child and is not married to their mother.
Furthermore, these children were not placed with him by an
authorized child placement agency.
On September 7, 2004, respondent issued a notice of
deficiency denying petitioner: (1) The claimed dependency
exemption deductions; (2) head-of-household filing status; (3)
the claimed earned income credit; and (4) the claimed child tax
credit for taxable year 2003.
Discussion
In general, the Commissioner’s determination set forth in a
notice of deficiency is presumed correct. Welch v. Helvering,
290 U.S. 111, 115 (1933). In pertinent part, Rule 142(a)(1)
provides the general rule that “The burden of proof shall be upon
the petitioner”. In certain circumstances, however, if the
taxpayer introduces credible evidence with respect to any factual
issue relevant to ascertaining the proper tax liability, section
7491 places the burden of proof on the Commissioner. Sec.
7491(a)(1); Rule 142(a)(2). Credible evidence is “‘the quality
of evidence which, after critical analysis, * * * [a] court would
find sufficient * * * to base a decision on the issue if no
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