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end of 2003. Lila also occasionally lived with petitioners for
weeks at a time. Petitioner did not introduce records of the
time Nathan and Lila spent with him.
On their 2003 joint Federal income tax return, petitioners
claimed a deduction for dependency exemptions for Nathan and
Lila.1 Petitioners did not attach to their return a Form 8332,
Release of Claim to Exemption for Child of Divorced or Separated
Parents, executed by Ms. Woodworth. Petitioner had asked Ms.
Woodworth to sign a Form 8332, but she refused to do so.
Respondent issued petitioners a notice of deficiency in June
2005, disallowing the claimed deduction for dependency
exemptions.
Discussion
In general, the Commissioner’s determinations set forth in a
notice of deficiency are presumed correct, and the taxpayer bears
the burden of showing that the determinations are in error. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Pursuant
to section 7491(a), the burden of proof as to factual matters
shifts to respondent under certain circumstances. Petitioners
have neither alleged that section 7491(a) applies nor established
their compliance with the requirements of section 7491(a)(2)(A)
and (B) to substantiate items, maintain records, and cooperate
1 Petitioners did not claim a deduction with respect to
Cyrus, and his status as a dependent is not in issue.
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