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Petitioner filed a Form 1040, U.S. Individual Income Tax
Return, for 2004, reporting wages of zero, net profit from
business of $16,134, and adjusted gross income of $14,994.
Respondent issued to petitioner a statutory notice of deficiency
determining that petitioner is not entitled to claim head of
household filing status. Respondent also disallowed dependency
exemption deductions for DR and AM, the earned income credit, and
the additional child tax credit because petitioner failed to
substantiate his claims.
Discussion
The Commissioner’s determinations are presumed correct, and
generally taxpayers bear the burden of proving otherwise.3 Rule
142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Dependency Exemption
Petitioner claimed dependency exemption deductions for DR
and AM for 2004. Respondent disallowed the deductions contending
that petitioner has failed to provide any substantiation that he
provided more than half of DR’s and AM’s support during 2004.
Section 151(c)(1) allows a taxpayer to claim an exemption
deduction for each qualifying dependent. A daughter of a brother
of the taxpayer is a “dependent” so long as the child’s gross
3Petitioner has not raised the issue of sec. 7491(a), which
shifts the burden of proof to the Commissioner in certain
situations. This Court concludes that sec. 7491 does not apply
because petitioner has not produced any evidence that establishes
the preconditions for its application.
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Last modified: May 25, 2011