Smith v. Commissioner

1997 T.C. Memo. 544, 74 T.C.M. 1344, 1997 Tax Ct. Memo LEXIS 627
Procedural entryThis page is a short order in Smith v. Commissioner. Read the opinion of the Court — 75 T.C.M. 1648
United States Tax Court·Decided December 9, 1997·No. Tax Ct. Dkt. No. 23824-95·Unpublished

Opinion

RODGER L. SMITH, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Smith v. Commissioner
Tax Ct. Dkt. No. 23824-95
United States Tax Court
T.C. Memo 1997-544; 1997 Tax Ct. Memo LEXIS 627; 74 T.C.M. (CCH) 1344;
December 9, 1997, Filed

*627 Decision will be entered for respondent.

Rodger L. Smith, pro se.
Lawrence B. Austin, for respondent.
DEAN, SPECIAL TRIAL JUDGE.

DEAN

MEMORANDUM OPINION

DEAN, SPECIAL TRIAL JUDGE: This case was heard pursuant to section 7443A(b)(3) and Rules 180, 181, and 182. 1

Respondent determined a deficiency of $2,200 in petitioner's Federal income tax for 1992.

*628 The issues for decision are: (1) Whether petitioner is entitled to a dependency exemption deduction; (2) whether petitioner may file as head of household; and (3) whether petitioner is entitled to the earned income credit. 2

*629 Some of the facts have been stipulated and are so found. The stipulation of facts and attached exhibits are incorporated herein by this reference. At the time the petition was filed, petitioner resided in Columbus, *630 Georgia.

BACKGROUND

Petitioner is not married. In 1992, he was a member of the United States Army and resided in the barracks in Washington, D.C. Petitioner's mother, Alzater Wiggins, lived in Columbus, Georgia, along with petitioner's 17-year old sister, Sonya Tolbert and her son, Pierre Tolbert. The house in which they resided was titled in Alzater Wiggins' name.

Ms. Wiggins received approximately $400 in Social Security benefits each month as her sole source of income. Petitioner made monthly mortgage payments on Ms. Wiggins' house and sent her $100 a month. Ms. Wiggins paid the household utility bills out of her $400 benefit, and when necessary petitioner sent her additional funds to cover monthly expenses above $400.

Both Sonya and Pierre Tolbert received some form of public assistance while living in Ms. Wiggins' home. Sonya Tolbert received $110 each month in food stamps and Pierre Tolbert's medical expenses were paid by the State of Georgia Department of Medical Assistance.

Petitioner filed as head of household for the taxable year 1992 and claimed dependency exemptions for both Sonya and Pierre Tolbert. Petitioner also claimed the earned income credit*631 in 1992 for Sonya and Pierre Tolbert in the amount of $1,261.

Respondent disallowed petitioner's claim for dependency exemptions on the grounds that he did not provide over one half of Sonya's and Pierre's support during 1992. Respondent also denied petitioner's claim for the earned income credit and his head of household filing status.

DISCUSSION

Respondent's determinations are presumed correct, and petitioner has the burden of proving them erroneous. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Taxpayers must maintain adequate records to substantiate the amount of any deductions or credits claimed. Sec. 6001; sec. 1.6001-1(a), Income Tax Regs.

The first issue we address is whether petitioner is entitled to claim dependency exemption deductions for Sonya and Pierre Tolbert. Section 151(c)(1) allows a taxpayer to claim an exemption deduction for each qualifying dependent. A sister or nephew is considered a "dependent" so long as the taxpayer is providing more than half the dependent's support for the taxable year and the dependent's gross income for that year is less than the exemption amount. 3

*632 Petitioner contends that because he sent checks to his mother in Columbus, Georgia, to cover the first and second mortgages on her house and other miscellaneous expenses, he is entitled to claim his sister and nephew as dependents while they are living in his mother's Georgia home.

Petitioner testified about his financial contributions to his mother that she used throughout the year. The parties stipulated that during 1992 petitioner made his mother's monthly mortgage payments of $197.16. At trial, petitioner testified that he also contributed $155 to his mother's second mortgage and sent her $100 a month 4.

We have no doubt that petitioner made significant financial contributions to the household. Petitioner, however, has not met his burden of proof because he failed to substantiate the total amount of support provided to Sonya and Pierre Tolbert.

In order for petitioner to establish that he provided more than half of his claimed dependents' support, he must first show by competent evidence the total amount of support furnished by all sources for the year in issue. Blanco v. Commissioner, 56 T.C. 512, 514 (1971).*633 Petitioner has not offered evidence of the total amount of support provided for Sonya and Pierre Tolbert in 1992.

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Smith v. Commissioner, 1997 T.C. Memo. 544, 74 T.C.M. 1344, 1997 Tax Ct. Memo LEXIS 627 (tax 1997).

1997 T.C. Memo. 544 (Smith v. Commissioner) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Welch v. Helvering
290 U.S. 111 (Supreme Court, 1933)
Blanco v. Commissioner
56 T.C. 512 (U.S. Tax Court, 1971)