Child Support Exemption Lost for Failure of Proof
Monday / June 11, 2007
The Tax Court ruled that an unmarried father could
not claim a dependency exemption for his son because
he did not prove his case.
A recent Tax Court ruling involved a
father's attempt to claim the dependency
exemption for his son, as well as a child care
credit, a child tax credit and an earned income
credit. The Tax Court denied the father any
relief because the father failed to present his
case adequately in court. If the father had
introduced his evidence property, the Tax Court
might have reached a different decision.
The father never was married to the mother of the child. The parents did not live together during the tax year in question, 2003. The child lived with his mother, her husband and her other son. The father visited with his son approximately two weekends per month and on holidays. During these visits, the father stayed with at the mother's house or with his mother because the father lived in Florida but had to travel to Georgia for visits. During the summer, the child lived with his father in Florida.
When it came time to file a tax return, the father claimed his son as a dependent. He also claimed a child care credit, a child tax credit and an earned income credit. The IRS disallowed them all, so the father took his case to tax court.
The Tax Court was tough on the taxpayer. The court observed: "In the instant case, the only evidence petitioner offered to support his claim that he had custody of [his son] for over half of 2003 was his own vague, implausible, uncorroborated testimony. Furthermore, petitioner did not produce any documents, receipts, or witnesses substantiating the amounts he allegedly paid to support [his son] or for child care during 2003."
The court explained the dependency exemption: "In general, a taxpayer is allowed an exemption for each dependent. A dependent includes a son or daughter of the taxpayer over half of whose support for the calendar year was provided by the taxpayer. In the case of a child who receives over half of his support during the calendar year from his parents, who are divorced or separated or who live apart during the last 6 months of the calendar year, the child is treated as receiving over half of his support from the parent having custody for the greater portion of the calendar year."
The father submitted a brief to the Tax Court that listed the times the father said he had custody of his son - 186 days - but the Tax Court could not consider the appendix because it had not been introduced into evidence at trial. So if you plan to challenge the IRS on tax exemptions, you should keep detailed records and be sure to introduce them into evidence.
The opinion is Smith v. Commissioner, T.C. Memo. 2006-163 (Aug. 14, 2006). Thanks to the Family Law Taxation blog for posting a note on this decision.
The father never was married to the mother of the child. The parents did not live together during the tax year in question, 2003. The child lived with his mother, her husband and her other son. The father visited with his son approximately two weekends per month and on holidays. During these visits, the father stayed with at the mother's house or with his mother because the father lived in Florida but had to travel to Georgia for visits. During the summer, the child lived with his father in Florida.
When it came time to file a tax return, the father claimed his son as a dependent. He also claimed a child care credit, a child tax credit and an earned income credit. The IRS disallowed them all, so the father took his case to tax court.
The Tax Court was tough on the taxpayer. The court observed: "In the instant case, the only evidence petitioner offered to support his claim that he had custody of [his son] for over half of 2003 was his own vague, implausible, uncorroborated testimony. Furthermore, petitioner did not produce any documents, receipts, or witnesses substantiating the amounts he allegedly paid to support [his son] or for child care during 2003."
The court explained the dependency exemption: "In general, a taxpayer is allowed an exemption for each dependent. A dependent includes a son or daughter of the taxpayer over half of whose support for the calendar year was provided by the taxpayer. In the case of a child who receives over half of his support during the calendar year from his parents, who are divorced or separated or who live apart during the last 6 months of the calendar year, the child is treated as receiving over half of his support from the parent having custody for the greater portion of the calendar year."
The father submitted a brief to the Tax Court that listed the times the father said he had custody of his son - 186 days - but the Tax Court could not consider the appendix because it had not been introduced into evidence at trial. So if you plan to challenge the IRS on tax exemptions, you should keep detailed records and be sure to introduce them into evidence.
The opinion is Smith v. Commissioner, T.C. Memo. 2006-163 (Aug. 14, 2006). Thanks to the Family Law Taxation blog for posting a note on this decision.
|
