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deductions for the two children, child tax credits, and an earned
income credit with respect to FA and AA. Petitioner listed the
two children as his son and daughter on his 2005 Federal income
tax return.
Respondent issued petitioner a notice of deficiency in July
2006, denying the claimed deductions and credits and changing
petitioner’s filing status to single. Petitioner filed a timely
petition for redetermination.
Discussion
In general, the Commissioner’s determination set forth in a
notice of deficiency is presumed correct, and the taxpayer bears
the burden of showing that the determination is 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. INDOPCO, Inc. v. Commissioner, 503
U.S. 79, 84 (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
items, maintain records, and cooperate fully with respondent’s
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