- 4 -
The Commissioner’s determinations in a notice of deficiency
are presumed correct, and the burden of proof is on the taxpayer
to prove that the determinations are in error. Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933). Pursuant, however,
to section 7491(a)(1), the burden of proof on factual issues that
affect a taxpayer’s tax liability may be shifted to the
Commissioner where the “taxpayer introduces credible evidence
with respect to * * * such issue”. In this case, there is no
dispute as to any factual issue. Accordingly, the case is
decided by the application of law to the undisputed facts, and
section 7491(a) is inapplicable.
1. Dependency Exemption Deduction
Section 151(c), in pertinent part, allows a taxpayer to
claim as a deduction the exemption amount for each individual who
is a “dependent” of the taxpayer as defined in section 152, and
who is the taxpayer’s child and satisfies certain age
requirements.
Section 152(a) defines “dependent”, in pertinent part, to
include a “son or daughter of the taxpayer” over half of whose
support is received from the taxpayer for the calendar year in
which the taxable year of the taxpayer begins, or is treated
under section 152(c) or (e) as received from the taxpayer.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: November 10, 2007