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Additional Child Tax Credit
Petitioner claimed the additional child tax credit with
respect to A.O.N. and A.V.N. for the taxable year 2003. Section
24(a) authorizes a child tax credit with respect to each
qualifying child of the taxpayer. The term “qualifying child” is
defined in section 24(c). A “qualifying child” means any
individual with respect to whom the taxpayer is allowed a
deduction under section 151, who has not attained the age of 17
as of the close of the taxable year, and who bears a relationship
to the taxpayer as prescribed by section 32(c)(3)(B). Sec.
24(c)(1).
For reasons previously discussed, petitioner is entitled to
the dependency exemption deduction with respect to A.O.N. under
section 151. Therefore, A.O.N. is petitioner’s only qualifying
child, and petitioner is entitled to a child tax credit with
respect to A.O.N. only.
Section 6662 Penalty
The final issue is whether petitioner is liable for the
accuracy-related penalty for the year 2003 under section 6662
for negligence, disregard of rules or regulations, or a
substantial understatement of income tax. Sec. 7491(c) places
upon the Commissioner the burden of production with respect to
any penalty or addition to tax. Based on the record, we hold
that respondent has satisfied the burden with respect to the
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Last modified: March 27, 2008