TAX COURT OPINION

Case: Hassan M. Omar
Docket Number: 19823-07S
Judge: Colvin
Opinion Type: bench
Filed: 12/01/2008
Pages: 5

UNITED STATES TAX COURT Washington, D .C . 2021 7 HASSAN M . OMAR, Petitioner , V . Docket No . 19823-07 S COMMISSIONER OF INTERNAL REVENUE , Respondent . O R D E R 7cc:v> S9v1:r sTAT . 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 the pages of the transcript of the trial of the above case before Special Trial Judge Lewis R . Carluzzo at San Diego, California, on October 27, 2008, containing his oral findings of fact and opinion rendered at the conclusion of trial . In accordance with the oral findings of fact and opinion, decision will be entered under Rule 155 . (Signed ) Lewis R. Carluzzo Special Trial Judg e Dated : Washington, D .C . December 1, 2008 SERVED Dec 02 2008 3 1 Bench Opinion by Special Trial Judge Lewis R . Carluzzo 2 Hassan M . Omar v . Commissione r 3 Docket No . 19823-07S October 27, 2008 4 THE COURT : The Court has decided to render 5 oral findings of fact and opinion in this case, and 6 the following represents the Court's oral findings of 7 fact and opinion . The oral findings of fact and 8 opinion shall not be relied upon as precedent in any 9 other case . 10 This proceeding for the redetermination of a 11 deficiency is a Small Tax Case conducted pursuant to 12 the provisions of Section 7463 of the Internal Revenue 13 Code of 1986, as amended, and Rules 170 through 175 of 14 the Tax Court Rules of Practice and Procedure . 15 This bench opinion is made pursuant to the 16 authority granted by Section 7459(b) of the Internal 17 Revenue Code of 1986, as amended, and Rule 152 of the 18 Tax Court Rules of Practice and Procedure . 19 Hereinafter in this bench opinion, section 20 references are to the Internal Revenue Code of 1986, 21 as amended, in effect for 2005 . Rule references are 22 to the Tax Court Rules of Practice and Procedure . 23 Hassan M . Omar appeared pro se . Erin K . 24 Salel appeared on behalf of Respondent . 25 In a notice of deficiency dated June 18, Heritage Reporting Corporatio n (202) 628-4888 4 1 2007, Respondent determined a $2,747 deficiency i n 2 Petitioner's 2005 federal income tax . The deficiency 3 is entirely attributable to the disallowance of th e 4 earned income credit claimed on Petitioner's 200 5 5 federal income tax return . Respondent now concede s 6 that Petitioner is entitled to an earned income credit 7 for 2005, but in a lesser amount . The issue fo r 8 decision is whether Petitioner is entitled to an 9 earned income credit in excess of the amount now 10 allowed by Respondent . 11 Some of the facts have been stipulated and 12 are so found . At the time the petition was filed, 13 Petitioner resided in California . 14 Petitioner was employed as a taxi cab driver 15 during 2005, and the modest income that he earned from 16 that employment is reported on his timely filed 2005 17 federal income tax return . As relevant here, on that 18 return, Petitioner claimed a dependency exemptio n 19 deduction for his daughter, who was born in 1993 20 (Petitioner's daughter) . The earned income credit 21 claimed on his 2005 return is computed by treating 22 Petitioner's daughter as a qualifying child fo r 23 purposes of that credit . In the above-referenced 24 notice of deficiency, Respondent disallowed that 25 earned income credit . Heritage Reporting Corporation (202) 628-4888 5 1 ResFGR ° and the mother of hi s 2 daughter did not live together during 2005 . Although 3 the evidence on the point is less than clear an d 4 hardly specific, we are satisfied that from time to 5 time during 2005, Petitioner' s daughter lived with 6 him, and at other times during 2005, Petitioner' s 7 daughter lived with her mother . 8 In general, and subject to variou s 9 conditions and limitations, an eligible individual is 10 entitled to an earned income credit . Section 32(a) . 11 For purposes of the earned income credit, an "eligible 12 individual" is defined to include an individual wh o 13 has a qualifying child . Section 32(c)(1)(i) . For 14 purposes of the earned income credit, the ter m 15 "qualifying child" means, with exceptions not relevant 16 here, the qualifying child of the taxpayer as defined 17 in Section 152(c) . 18 Subject to special rules not relevant here, 19 that section defines the term "qualifying child" to 20 include an individual who, among other requirements 21 not here in dispute, has the same principal place of 22 abode as the taxpayer for more than one half of the 23 year . Section 152(c) (1) (B) . 24 The evidence in this case is hardl y 25 sufficient to support a finding that Petitioner and Heritage Reporting Corporatio n (202) 628-4888 6 1 his daughter had the same principal place of abode for 2 more than one half of 2005 . It follows tha t 3 Petitioner's daughter does not fit within th e 4 definition of his qualifying child as provided i n 5 Section 152(c), and therefore, she is not treated a s 6 his qualifying child for purposes of the earned income 7 credit . Respondent's disallowance of the earne d 8 income credit claimed on Petitioner's 2005 return is 9 sustained . 10 As noted, Respondent now agrees tha t 11 Petitioner is, eligible for and entitled to an earned 12 income credit in an amount computed without a 13 qualifying child . See Section 32(c)(1)(A)(ii) . 14 To reflect the foregoing, and to ensure that 15 the appropriate amount of Petitioner's earned income 16 credit is taken into account, decision will be entered 17 under Rule 155 . 18 This concludes the Court's oral findings of 19 fact and opinion in this case . 20 (Whereupon, at 10 :44 a .m ., the bench opinion 21 in the above-entitled case was concluded . ) 22 // 2 3 24 // 25 Heritage Reporting Corporation (202) 628-4888