TAX COURT OPINION

Case: Hector Oliden Gonzalez
Docket Number: 24163-10
Judge: Wherry
Opinion Type: bench
Filed: 01/03/2012
Pages: 6

UNITED STATES TAX COURT WASHINGTON, DC 20217 HECTOR OLIDEN GONZALEZ, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent ) ) ) ) ) ) ) ) ) O R D E R Docket No. 24163-10. Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit herewith to Petitioner and to respondent a copy of transcript of Wherry, Jr., at Los Angeles, California, commencing on December 5, 2011, containing his oral opinion rendered at the conclusion of findings of the trial. the trial in the above case before Judge Robert A. the pages of the fact and In accordance with the oral findings of fact and opinion, a decision will be entered under Rule 155 of Practice and Procedure. the Tax Court Rules of (Signed) Robert A. Wherry, Jr. Judge Dated: Washington, D.C. January 3, 2012 SERVED JAN - 5 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 Bench Opinion By Judge Robert A. Wherry, Jr. Hector Gonzalez v. Commissioner Docket No.: 24163-10 December 14, 2011 The Court has decided to render oral findings of fact and opinion in this case, and the following constitutes the Court's oral findings of fact and opinion. These oral findings of fact.and opinion shall not be relied upon as precedent in any other case. This bench opinion is made pursuant to the authority granted by section 7459(b) and Rule 152, the Tax Court Rules of Practice and Procedure. Unless otherwise indicated, all section references are to the Internal.Revenue Code of 1986, as amended and in effect for the tax years at issue, and all other references to.the Rules are to the Tax Court Rules of Practice and Procedure. Petitioner appeared on his own behalf. Vladislav M. Rozenzhak appeared on behalf of respondent. The instant proceeding arises from a petition dated November 1, 2010, for redetermination of petitioner's income tax liabilities for 2009 as determined by respondent. This case was tried on December 13, 2011, in Los Angeles, California. At trial respondent conceded that petitioner is entitled Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 to three exemptions for dependents and that petitioner is entitled to head of household filing status for 2009. After these concessions the issues for decision are: (1) Whether petitioner is entitled to the Child Tax Credit and Additional Child Tax Credit for 2009; and (2) whether petitioner is entitled to the Earned Income Tax Credit for 2009. Background Some of the facts have been stipulated, the stipulated facts and the accompanying exhibits are hereby incorporated by this reference. At the time petitioner filed his petition, he resided in California. Petitioner lives with his girlfriend and her three children. Petitioner is not related to the children. The parties stipulated that the three children are United States citizens who lived with petitioner during 2009 and that he provided more than half of their financial support during the year at issue. On petitioner's Form 1040, U.S. Individual Income Tax Return for 2009, he claimed the Earned Income Tax Credit, Child Tax credit and Additional Child Tax Credit, three exemptions for dependents, and Heritage Reporting,Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 5 filed as the head of household. Discussion As a general rule, the Commissioner's determination of a taxpayer's liability in the notice of deficiency is presumed correct, and the taxpayer bears the burden of proving that the determination is improper. See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). I. Child Tax Credits Section 24(a) authorizes a child tax credit with respect to each "qualifying child" of the taxpayer. See sec. 151(c). A "qualifying child" means an individual who meets the requirements of section 152(c) and who has not attained the age of 17. Sec. 24 (c) (1). Section 152(c) provides in pertinent part: . (1) In general.--The term "qualifying child" means, with respect for any taxable year, an individual-- to any taxpayer (A) who bears a relationship to the taxpayer described in paragraph (2) , (B) who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, (C) who meets the age requirements of paragraph (3), and (D) who has not provided over one-half of such individuals own support for the calendar year in which Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 6 the taxable year of begins. the taxpayer (E) who has not filed a joint return (other than only for a claim of refund) with the individual's spouse under section 6013 for the taxable year beginning in the calendar year in which the taxable year of begins. the taxpayer (2) .Relationship.--For purposes of .paragraph (1) (A), an individual bears a relationship to the taxpayer described in this paragraph if such individual is -- . a descendant of such a child, or (A) a child of the taxpayer of (B) a brother, sister, stepbrother, or stepsister of or a descendant of any such relative. the taxpayer . None of petitioner's girlfriend's children satisfy the section 152(c) (2) relationship test. Collier v. Commissioner, T.C. Memo. 2011-126. Accordingly, none of them fit within the meaning of "qualifying child" as defined by section 24 (c). Therefore, the Court concludes that petitioner is not entitled to a Child Tax Credit or an Additional Child Tax Credit for 2009. II. Earned Income Credit Section 32(a) (1) allows an eligible individual an Earned Income.Credit against the individual's income tax liability. Section 32(a) (2) limits the credit allowed through a phaseout, and section 32(b) prescribes different percentages and Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 amounts used to calculate the credit. The limitation amount is based on the amount of a taxpayer's earned income and whether the taxpayer has no qualifying child, one qualifying child, or two or more qualifying children. To be eligible to claim an Earned Income Credit with respect to a child, the taxpayer must establish that the child is a "qualifying child" of the taxpayer as defined in section 152(c). That determination is made without regard to section 152(c) (1) (D) and (E). Sec. 32(c) (3) (A). None of Petitioner's girlfriend's children qualify as a qualifying child under section 152(c) as discussed supra. Therefore petitioner is not eligible for an Earned Income Tax Credit with respect to the children for 2009. To reflect the foregoing, decision will be entered under Rule 155 of the Tax Court Rules of Practice and Procedure. This concludes the Court's findings of fact and opinion in this case. (Whereupon, at 1:36 p.m., the bench opinion in the above-entitled matter was concluded.) // // // Heritage Reporting Corporation (202) 628-4888