Nathan Andrew Poehlein - Page 5

                                        - 4 -                                         
          burden of proof on the Commissioner.  Sec. 7491(a)(1); Rule                 
          142(a)(2).  Credible evidence is “‘the quality of evidence which,           
          after critical analysis, [a] court would find sufficient upon               
          which to base a decision on the issue if no contrary evidence               
          were submitted’”.  Baker v. Commissioner, 122 T.C. 143, 168                 
          (2004) (quoting Higbee v. Commissioner, 116 T.C. 438, 442                   
          (2001)).  Section 7491(a)(1) applies only if the taxpayer                   
          complies with substantiation requirements, maintains all required           
          records, and cooperates with the Commissioner’s requests for                
          witnesses, information, documents, meetings, and interviews.                
          Sec. 7491(a)(2).  Although neither party alleges the                        
          applicability of section 7491(a), we conclude that the burden of            
          proof has not shifted to respondent with respect to any of the              
          issues in this case.                                                        
               Moreover, deductions are a matter of legislative grace and             
          are allowed only as specifically provided by statute.  INDOPCO,             
          Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice              
          Co. v. Helvering, 292 U.S. 435, 440 (1934).                                 
          1.  Dependency Exemption Deductions                                         
               Section 151 allows as a deduction an exemption for each                
          dependent of the taxpayer.  Sec. 151(c).  Section 152(a) defines            
          the term “dependent”, in pertinent part, to include a son or                
          daughter of the taxpayer over half of whose support for the                 
          calendar year was received from the taxpayer.  “[S]upport”                  

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011