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factual issues may shift to the Commissioner where the taxpayer
introduces credible evidence and complies with substantiation
requirements, maintains records, and cooperates fully with
reasonable requests for witnesses, documents, and other
information. Petitioner has not met the requirements of section
7491(a) because he has not met the substantiation requirements or
introduced credible evidence to support the deductions and
credits at issue.
1. Dependency Exemptions
Section 151(c) allows a taxpayer to deduct an annual
exemption amount for each dependent of the taxpayer. As applied
in this context, the definition of a “dependent” under section
152(a) includes a son3 or the daughter of a brother4 over half of
whose support was received from the taxpayer. “[W]here there is
no evidence as to the total amount expended for support of the
child during the taxable year and no evidence from which it can
reasonably be inferred, it is not possible to conclude that the
taxpayer has contributed more than one-half.” Stafford v.
Commissioner, 46 T.C. 515, 518 (1966). If a child receives over
half of his support during the calendar year from his parents,
who live apart at all times during the last 6 months of the
calendar year, and such child is in the custody of one or both of
3 Sec. 152(a)(1).
4 Sec. 152(a)(6).
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Last modified: May 25, 2011