Clarissa Ybarra - Page 8




                                        - 7 -                                         
          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).                                               






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

Last modified: March 27, 2008