- 3 -
Petitioner’s mother, aunt, and siblings remained in Gaithersburg
during this time.
Petitioner filed his 2004 Federal income tax return as a
“head of household”. He also claimed deductions for dependency
exemptions, child tax credits, and an earned income credit with
respect to two of his sisters, FM and MM.1 Respondent issued
petitioner a notice of deficiency in February 2006 denying the
claimed deductions and credits. Respondent also changed
petitioner’s filing status to single.
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). Deductions
and credits are a matter of legislative grace, and the taxpayer
bears the burden of proving entitlement to any deduction or
credit claimed on a return. See INDOPCO, Inc. v. Commissioner,
503 U.S. 79 (1992); Wilson v. Commissioner, T.C. Memo. 2001-139.
Pursuant to section 7491(a), the burden of proof as to
factual matters shifts to the Commissioner under certain
circumstances. Petitioner has neither alleged that section
7491(a) applies nor established his compliance with the
requirements of section 7491(a)(2)(A) and (B) to substantiate
1 The Court uses only the minor children’s initials.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011