Kevin Orlando McClain - Page 4

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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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