- 4 -
in tax for petitioner’s 2001 taxable year and a $5,3063
deficiency in tax for petitioner’s 2002 taxable year and sent
petitioner notices of deficiency on September 26 and August 22,
2003, respectively. Petitioner timely petitioned this Court,
denying that she owed the deficiencies in taxes and requesting
the refund of overpayments from subsequent tax years which
respondent had used to offset her 2001 and 2002 tax liabilities.
Discussion
As a general rule, the Commissioner’s determinations in the
notice of deficiency are presumed correct and the burden of
proving an error is on the taxpayer.4 Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
Custody is determined by the most recent divorce or custody
decree. Sec. 1.152-4(b), Income Tax Regs. A noncustodial parent
may be entitled to a dependency exemption deduction under section
151 if the noncustodial parent attaches to his or her tax return
3The amount stated in the notice of deficiency for taxable
year 2002 was based on respondent’s determination that
petitioner’s correct filing status was married filing separately.
Respondent now concedes that petitioner’s correct filing status
is single and that the correct amount of the deficiency for
taxable year 2002 is $5,186.
The Form 4549, Income Tax Examination Changes, attached to
the notice of deficiency for taxable year 2002 shows that
respondent applied a $4,027 overpayment from a subsequent tax
year against petitioner’s 2002 deficiency.
4Sec. 7491(a)(1) does not apply in the instant case because
petitioner did not comply with the substantiation and document
production requirements. See sec. 7491(a)(2).
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011