T.C. Summary Opinion 2005-56
UNITED STATES TAX COURT
CHUKS ANTHONY MBANU, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 12132-02S. Filed May 5, 2005.
Chuks Anthony Mbanu, pro se.
Thomas Yang, for respondent.
DEAN, Special Trial Judge: This case was heard pursuant to
the provisions of section 7463 of the Internal Revenue Code in
effect at the time that the petition was filed. Unless otherwise
indicated, subsequent section references are to the Internal
Revenue Code in effect for the year in issue, and all Rule
references are to the Tax Court Rules of Practice and Procedure.
The decision to be entered is not reviewable by any other court,
and this opinion should not be cited as authority.
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Respondent determined for taxable year 2000 a deficiency in
petitioner's Federal income tax of $2,422.
Before trial, respondent conceded that petitioner is
entitled to one dependency exemption in addition to one exemption
for himself for taxable year 2000. The remaining issues are:
(1) Whether petitioner is entitled to head of household filing
status; and (2) whether petitioner is entitled to the earned
income credit.
Background
Some of the facts have been stipulated and are so found.
The stipulation of facts and the exhibits received into evidence
are incorporated herein by reference. At the time the petition
in this case was filed, petitioner resided in Chicago, Illinois.
Throughout taxable year 2000, petitioner was legally married
to Charity Mbanu. They are the parents of two children. From
January through mid-June of 2000, petitioner and his wife lived
apart. From mid-June of 2000 through the end of the year,
petitioner, his wife, and their children lived together.
Petitioner and his wife did not file a joint income tax
return for 2000. Petitioner timely filed an individual income
tax return for 2000 as a head of household.
Respondent issued a notice of deficiency determining that
petitioner is not entitled to head of household filing status or
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the earned income credit for 2000 because he failed to
substantiate his claims.
Discussion
Deductions are a matter of legislative grace, and taxpayers
must maintain adequate records to substantiate the amounts of any
deductions or credits claimed. Sec. 6001; INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); sec. 1.6001-1(a), Income
Tax Regs. Taxpayers generally bear the burden of proving that
the Commissioner's determinations are incorrect. Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933). The Court decides
this case without regard to the burden of proof. Accordingly,
the Court need not decide whether section 7491(a)(1) is
applicable in this case. See Higbee v. Commissioner, 116 T.C.
438 (2001).
1. Head of Household Filing Status
Section 1(b) imposes a special tax rate on an individual
filing as a head of household. As relevant herein, section 2(b)
defines a "head of household" as an unmarried individual who
maintains as his home a household that for more than one-half of
the taxable year constitutes the principal place of abode of an
unmarried child of the individual. Sec. 2(b)(1)(A)(i).
Petitioner's eligibility for head of household filing status
depends on whether he is treated as unmarried. Section 7703(a)
provides that an individual's marital status shall be determined
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at the end of the taxable year and "an individual legally
separated from his spouse under a decree of divorce or of
separate maintenance shall not be considered as married." Sec.
7703(a)(2). Petitioner does not meet this requirement. Section
7703(b) provides, in pertinent part, that if
(1) an individual who is married * * *
and who files a separate return maintains as
his home a household which constitutes for
more than one-half of the taxable year the
principal place of abode of a child * * *
with respect to whom such individual is
entitled to a deduction for the taxable year
under section 151 * * *,
(2) such individual furnishes over
one-half of the cost of maintaining such
household during the taxable year, and
(3) during the last 6 months of the
taxable year, such individual's spouse is not
a member of such household,
such individual shall not be considered as married.
These requirements are stated in the conjunctive, and the
requirements of each paragraph must be satisfied.
Petitioner concedes that he was married during 2000 and that
his wife lived with him from mid-June through the end of the
year. The Court sustains respondent's determination that
petitioner is not entitled to head of household filing status.
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2. Earned Income Credit
Section 32(a)(1) allows an eligible individual an earned
income credit against the individual's income tax liability.
Section 32(c)(1)(A)(i), in pertinent part, defines an "eligible
individual" as "any individual who has a qualifying child for the
taxable year". A qualifying child includes a son or daughter of
the taxpayer who has the "same principal place of abode as the
taxpayer for more than one-half of such taxable year". Sec.
32(c)(3)(A)(ii) and (B)(i)(I).
Section 32(d) provides, however: "In the case of an
individual who is married (within the meaning of section 7703),
this section shall apply only if a joint return is filed for the
taxable year under section 6013." As discussed supra, the Court
finds that petitioner was married during 2000, and since he and
his wife did not file a joint return, concludes that he is not
entitled to claim an earned income credit.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.