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petitioner and Mr. Olivas’s claiming the earned income credit and
an additional child tax credit in excess of the allowable
amounts. These credits are attributable to both spouses, posits
respondent, rather than only to Mr. Olivas. We do not agree.
An “item” for purposes of section 6015, and more
specifically section 6015(b)(1)(B), is “that which is required to
be separately listed on an individual income tax return or any
required attachments. Items include, but are not limited to,
gross income, deductions, credits, and basis.” Sec. 1.6015-
1(h)(3), Income Tax Regs. An “erroneous item” is “any item
resulting in an understatement or deficiency in tax to the extent
that such item is omitted from, or improperly reported * * * on
an individual income tax return.” Sec. 1.6015-1(h)(4), Income
Tax Regs.
The retirement distributions Mr. Olivas received constitute
gross income, which is required to be separately listed on an
individual tax return. Those distributions were “erroneous
5(...continued)
6662(d)(2)(A) and the regulations thereunder; i.e., the excess of
the amount of tax required to be shown on the return over the
amount of the tax imposed which is shown on the return, reduced
by any rebate (within the meaning of sec. 6211(b)(2)). See sec.
6662(d)(2)(A). Neither the amount of tax required to be shown on
the return, see secs. 1.6662-4(b)(3), 1.6664-2(b), Income Tax
Regs., nor the amount of tax imposed which is shown on the
return, see secs. 1.6662-4(b)(4), 1.6664-2(c), Income Tax Regs.,
takes into account credits for tax withheld under sec. 31 (with
exceptions not present here).
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