T.C. Sum m ary Opi ni on 20 13 -5 7

UNITED STAT ES TAX COURT ANN MARIE ADAMS, Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 13 76 7- 12 S. Fil edJu ly 18, 2 01 3.

Ann Mari e Ada m s, p ro se. W il li am C. Bo rg ardus an d Deb ra Lynn e Rea le , forres po nd en t.

SUMM ARY OPINION PANUTHOS, Chi ef Sp eci al Trial Ju dg e: Thi s ca se was h eardpu rs ua ntto th e p ro vi si on s o f se ct io n 7 46 3 o f th e In te rn al Rev en ue Co de in effe ctwhen th e pe ti ti on was fi le d. Pu rs ua ntto sec ti on 74 63 (b ), th e d eci si on to be en te redis no t rev ie wab le by any

ot he r co urt, an d thi s o pi ni on sh al l n otbe tre at edas p rece de nt- 2 -

fo r an y ot he r cas e. Unl es s o th erwi se in di cat ed , subs eque ntsec ti on refe ren ces are to th e In te rn al Rev en ue Co de in effe ctforth e y ear i n i ss ue , andall Ru le refe ren ces are t o t he Tax C ou rt Rul es of P ract ic e an d P ro cedur e. Ina no ti ce o f de fic ie nc y

da te d M arch 5, 2 01 2, re sp on de ntde te rm in eda de fic ie nc y

in pe ti ti on er’s Fed eral in co m e ta x o f $2 ,49 8 fo r ta x year 20 10 . After co nc es si on s, th e so le is su e fo r de ci si onis th e am ou ntof t he sec ti on 25 A li fet im e

1 le arn in g c red itto whi ch pe ti ti on er i s en ti tl edfor tax y ear 2 01 0. Bac kg ro un d Pet it io ne r res id edin Co nn ect ic utwhen he r pe ti ti onwas fi le d. Thi s m at te r was in it ia ll y

cal le d a t t he cal en da r cal l o f th e Co urt i n Hartfo rd , Co nn ect ic ut , on Feb ru ary 11 , 20 13 . The p art ie s ap pe aredan d wer e h eard . Co un se l fo r res po nd en t i ni ti al ly adv is edth e Co urt t ha t t he re was a ba si s o f se tt le m en t. Itbe cam e ap pa ren t atth e in it ia l h eari ng th atpe ti ti on er d idno t ag ree wit h t he term s o f th e se tt le m en t re sp on de ntpro po se d, n ordi d s he ag ree wi th th e pr op os edset tl em en t d oc um en t re sp on de nt ’s cou ns el pro ffer ed . The m atte r was reca ll edov er the co ur se of the fol lo win g t wo d ay s fo r furth er o ral rep orts by the Res po nd en t co nc ed es th atpe ti ti on er p ai d a n a dd it io na l $ 10 0 i n qua li fie d 1 tu it io n a ndrel at edex pe ns es an d t ha t p et it io ne r th us pa idto ta l qua li fie d tui ti on an d rel at edexpe ns es of $ 6,5 34 in 20 10 . The remaini ng co nc es si on s ar e d is cu ss edin th e b ack gr ou ndsec ti on .- 3 -

pa rti es . On Feb ru ary 13 , 20 13 , th e p art ie s re adin to th e rec or d c ert ai n o ral ag reem en ts . The s pe ci fic ag reem en ts were fu rth er re fle ct edinanord er i ss ue d b y th e Co urt o n Ap ril 4, 2 01 3. Th e Apr il 4, 2 01 3, o rd er s ta te d a s fo ll ows :

On Fe br ua ry 13 , 20 13 , th e p art ie s o ral ly sti pu la te d o n t he reco rdth e fo ll owi ng : 1. Pe ti ti on er re cei ve d a ndfai le d t o re po rt $ 17 ,95 9 o f un em pl oym en t co m

pe ns at io n i n 2 01 0. 2. Pe ti ti on er i s n oten ti tl edto $3 70 of c la im edearn edin co m e ta x c red itin 20 10 . 3. Pe ti ti on er i s en ti tl edto anad di ti on al wit hh ol di ng cred itof $1 ,73 2 fo r 20 10 . 4. Pe ti ti on er i s en ti tl edto th e st an da rdde du ct io n fo r 20 10 an d do es no t h av e en ou gh ex pe ns es to cla im it em iz edde du ct io ns for 20 10 . 5. Pe ti ti on er i s n oten ti tl edto th e Am eri can Opp ortu ni ty Credi t fo r 20 10 . 6. Th e o ne rem ai ni ng is su e in th e cas e is th e am ou ntpe ti ti on er is en ti tl edto cla im

forth e li fet im e le arn in g c red itfor20 10 . 7. With reg ardto th e li fet im e le arn in g c red it , res po nd en t co nc ed es th atpe ti ti on er p ai d $ 6,4 34 of qua li fie d e du cat io n e xp en se s in 20 10 , andpe ti ti on er co nc ed es th atsh e rec ei ve d $ 5,8 76 .50 of sc ho la rs hi ps or g ran ts in20 10 . 8. With reg ardto th e li fet im e le arn in g c red it , th e p art ie s di sa gr ee as to whethe r an en try in t he am ou ntof $ 9,6 11 .50 li st edon anacco un t s umm ary pr ov id edby H owa rdUni ve rs it y da te d- 4 -

Sep te m be r 24 , 20 10 , was ex pe nd edon qu al ifi ededuc at io n e xp en se s by pet it io ne r. The Co urt p erm it te d p et it io ne r ad di ti on al ti m e to pro vi de subs ta nt ia ti on for el ig ib il it y forth e cre di t, p art ic ul arl y with re ga rdto th e $ 9,6 11 .50 li st edonth e acco un t s umm ary. Sin ce t he pa rti es were u nabl e to st ip ul at e an y do cu m en ts , th e Co urt o n Ap ril 4, 2 01 3, o rd eredth ata si x- pa ge do cu m en t at ta ch edto pe ti ti on er’s st atus rep ort fi le d M arch 27 , 20 13 , be e nt eredin to ev id en ce as pe ti ti on er’s ex hi bi t. The ex hi bi t i nc lu de s a s ta te m en t o f acc ou ntfro m Howar d Un iv ers ity , Offic e o f Stud en t Fi na nc ia l Se rv ic es . Two pa ge s o f th e st at em en t, d at edFeb ru ary 21 , 20 13 , refl ectch arg es forth e 2 01 0 s pr in g a ndfal l s em es te rs . W it h re sp ectto th e sp rin g se m es te r th ere a re two i te m s l is te d a s “ cred itba la nc e d ire ctde po si t” in th e am ou nt s o f $6 ,59 7.5 0 a nd$3 ,01 4. Th ere are o th er am ou nt s s ho wn o n t he se pa ge s of th e st at em en t i de nt ifi edas tui ti on an d m is cel lane ou s fe es , in cl ud in g a gr adua ti on fee o f $1 00 . The Co urt o rd eredth e p art ie s t o s ho w cau se in writ in g, o n o r be fo re Ma y 6, 20 13 , why

th e cas e sh ou ldno t b e d eem edsubm it te d. Th e Co urt, n otha vi ng rece iv edanob

jecti on fro m

eit he r pa rty, deem edth e m atte r subm it te d b y ord er da te d M ay

15 , 20 13 .- 5 - Dis cu ss io n The Co m m is si on er’s d et erm in at io n s etforth in a no ti ce o f de fic ie nc y is pr es um edco rrec t, an d atax pa y er g en eral ly bears th e b ur de n o f pr ov in g o th erwi se . Ru le 14 2( a); W el chv. Hel ve rin g, 2 90 U.S. 11 1, 1 15 (19 33 ). Dedu ct io ns are a m at te r of leg is la ti ve gra ce, an d t he tax pa y er b ears th e b ur de n o f pr ov in g en ti tl em en t t o a ny deduc ti on cla im ed . Rul e 1 42 (a); New Co lo ni al Ice Co . v. Helv eri ng , 29 2 U.S. 4 35 , 44 0 (1 93 4) . Pu rs uantto sec ti on 74 91 (a), t he bu rd enof p ro of m ay sh iftto th e Co m m is si on er i f th e ta xp ay er p ro du ces cred ib le ev id en ce wi th res pe ctto any rel ev an t fa ctua l i ss ue an d m eet s o th er req ui rem en ts . Peti ti on er d oe s n otco nt en d th atsec ti on 74 91 (a) s hi fts th e b ur de n o f pr oo f to res po nd en t, n ordo es th e rec or d es tabl is h t ha t p et it io ne r sa ti sf ie s t he sec ti on 74 91 (a)( 2) requi rem en ts . The on ly iss ue forde ci si on is whet he r th e in fo rm at io n p et it io ne r subm it te d in th e ex hi bi t re ferr edto ab ov e es tabl is he s t ha t p et it io ne r pa idqu al ifi edtu it io n a nd rel at edexpe ns es in ex ces s o f th e am ou ntres po nd en t co nc ed es sh e p ai d a ndis th us en ti tl edto a gr eat er l ife ti m e le arn in g c red itun de r se ct io n 2 5A. Pet it io ne r as se rts th atanam ou ntof $ 9,6 11 .50 (th e co m bi na ti on of t he $6 ,59 7.5 0 and$3 ,01 4) refl ect edon th e Howa rdUni ve rs it y acco un t s umm ary fo r th e sp rin g 2 01 0 s em es te r supp orts he r cl ai m . Res po nd en t as se rts th atth e ex hi bi t en te redin to ev id en ce d oe s- 6 -

no t s up po rt p et it io ne r’s cl ai m foranad di ti on al educ at io n e xp en se or c red it . Thu s, res po nd en t as se rts th atpe ti ti on er i s en ti tl edto qu al ifi edtu it io n a ndrel at ed ex pe ns es of o nl y

$6 ,53 4 ($ 6,4 34 ag reedto in th e o ral st ip ul at io n p lu s t he $1 00 co nc es si on ). The on ly evi de nc e inth is cas e is a co py of th e Howa rdUni ve rs it y acco un t st at em en t. The id en ti fic at io n o f th e d is pu te d a m ou nt s as ch arg es de sc rib edas

“ cred itba la nc e d ire ctde po si t” do es no t l eadto th e co nc lu si onth atpe ti ti on er p ai d sa idam ou nt s fo r educ at io n e xp en se s i n 2 01 0. Th ere i s n ot hi ng in th is do cu m en t whi chwou ldsupp ort p et it io ne r’s as se rti on th atsh e is en ti tl edto qu al ifi edtu it io n oreduc at io n e xp en se s i n a n a m ou ntgre at er tha n t ha t al lo wedby resp on de ntan d pr ev io us ly agree d t o b y

th e p art ie s. Pet it io ne r ha s fa il edin he r bu rd enof p ro of to es tabl is h a ny exp en di tu re fo r qu al ifi edtu it io n andrel at edex pe ns es gre at er tha n th atall owe d b y

or a gr eedto by resp on de nt . The Co urt wi ll en te r a d eci si on in th is cas e p ur su an t t o R ul e 1 55 be cau se of th e co nc es si on s b y

th e p art ie s as enum erat edhe rei n. Th is wil l p ro vi de an op po rtu ni ty for the pa rti es to co m pu te th e co rrec t t ax on th e b as is of t he m utua l co nc es si on s an d t he op in io n h erei n. Pe ti ti on er i s ad vi se d tha t Ru le 15 5( c) pr ov id es :- 7 -

(c) L imit o n Arg ument: Any arg um en t u nd er thi s R ul e wil l b e co nf in edst ric tl y

to co ns id erat io n o f th e co rrec t co m pu ta ti onof t he am ou ntto be in cl ud edin th e d eci si on res ul ti ng fro m th e fi nd in gs an d co nc lu si on s m ad e b y

th e Co urt, an d n o a rg um en t wi ll be he ardup on orco ns id erat io n g iv ento th e is su es or m at te rs di sp os edof b y th e Co urt’s fi nd in gs an d c on cl us io ns or t o a ny new is su es . This Ru le is no t t o b e reg ard edas a ffo rd in g a n o pp ortu ni ty for ret ria l o r reco ns id erat io n. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te redun de r Ru le 15 5.