DocketNumber: Tax Ct. Dkt. No. 7496-97
Citation Numbers: 1998 T.C. Memo. 382, 76 T.C.M. 726, 1998 Tax Ct. Memo LEXIS 384
Judges: NAMEROFF
Filed Date: 10/23/1998
Status: Non-Precedential
Modified Date: 4/18/2021
Decision will be entered for respondent.
MEMORANDUM OPINION
NAMEROFF, SPECIAL TRIAL JUDGE: This case was heard pursuant to the provisions of section 7443A(b)(3) and Rules 180, 181, and 182. 1 Respondent determined a deficiency in petitioner's 1994 Federal income tax in the amount of $ 5,037, plus an addition to tax under
The issues for decision are: (1) Whether petitioner is entitled to claim $ 21,130 in itemized deductions on Schedule A; (2) whether petitioner is entitled to claim a dependency exemption deduction for his son; (3) whether petitioner is entitled to claim head-of-household filing status; (4) whether petitioner is liable for the addition to tax under
No 1998 Tax Ct. Memo LEXIS 384">*385 stipulation of facts has been filed in this case. 2 At the time he filed his petition, petitioner resided in Aliso Viejo, California.
Schedule A
During 1994, petitioner was employed as a general machinist at Mag Instruments, Inc. (Mag) in Ontario, California. Petitioner worked for Mag from September 1992 until September 1995 when he was terminated. Before working for Mag, petitioner lived in Aliso Viejo, California. Petitioner took the job with Mag because it was the only employment he could find. Due to the distance between Aliso Viejo and Ontario (58 miles), petitioner moved to Ontario where he rented an apartment for $ 750 per month.
Before September 1992, petitioner resided in Aliso Viejo with his ex-wife and their two children, who were attending Saddleback 1998 Tax Ct. Memo LEXIS 384">*386 College. According to petitioner, they lived together for economical reasons. Petitioner and his ex-wife had been divorced in 1990, and his ex-wife was granted sole physical and legal custody of their two minor children, one of whom was Douglas Gasparutti. Petitioner was ordered to pay child support of $ 168 per child per month. Petitioner considered the residence in Aliso Viejo his permanent residence; after moving to Ontario, he drove back to Aliso Viejo on weekends. Petitioner's ex-wife was the tenant and paid the rent at the Aliso Viejo residence.
At some point in 1995, petitioner was evicted from his apartment in Ontario. Petitioner testified that his landlord took all of his belongings and paperwork and that he never recovered them.
On his Schedule A for 1994, petitioner claimed the following expenses: $ 5,076.40 for medical expenses, 3 $ 2,515.42 for State and local income taxes, 4 $ 3,935.71 for other taxes, 5 and $ 9,602.58 in unreimbursed employee expenses. 6 At trial, petitioner explained that the unreimbursed employee expenses consisted of his rental payments at the Ontario apartment and the traveling expenses he incurred going back to Aliso Viejo on weekends. Petitioner 1998 Tax Ct. Memo LEXIS 384">*387 also contended that he should not have to pay tax on Social Security and Medicare withholdings since they are not considered income.
Respondent disallowed the expenses claimed on Schedule A and, instead, allowed the standard deduction.
a. MEDICAL EXPENSES
Petitioner testified that some of his medical documents were taken by the landlord when he was evicted. Although the Court informed petitioner that evidence was needed to prove the amounts claimed, petitioner also stated that he did not wish to provide any documents regarding his medical condition because it is an invasion of his privacy. Petitioner has failed to meet the substantiation requirements provided by
b. TAXES
Moreover, it is unclear whether and to what extent any Social Security benefits were repaid by petitioner in 1994. Nevertheless, even if he did repay $ 905 in 1994, he is not entitled to the deduction under
c. EMPLOYEE BUSINESS EXPENSES
Generally, "home", as used in
When a taxpayer accepts temporary work in a place away from his residence, he may deduct the living expenses incurred at the temporary post of duty, because it would not be reasonable to expect him to move his residence under such circumstances. See
Petitioner was employed at Mag for more than 2 years as of the end of 1994. Petitioner never established that this employment initially was temporary or for a reasonably short period. Therefore, when petitioner moved to Ontario for employment with Mag, his "home" shifted to Ontario. Consequently, 1998 Tax Ct. Memo LEXIS 384">*393 while in Ontario, he was not "away from home". Moreover, petitioner was not maintaining two households since his ex-wife was the tenant paying the rent at the Aliso Viejo residence. Accordingly, petitioner's living expenses in Ontario are not deductible under
Petitioner's transportation expenses between Ontario and Aliso Viejo are not deductible business expenses. Petitioner's trips to Aliso Viejo were for the personal purpose of visiting his children. Accordingly, petitioner is not entitled to deduct the claimed employee business expenses.
DEPENDENCY EXEMPTION
On his 1994 return, petitioner claimed his son Douglas as a dependent. He indicated on his return that Douglas did not live with him due to separation or divorce. At trial, petitioner testified that he supported Douglas by paying child support and by purchasing a car for him. Petitioner did not state the age of Douglas in 1994, but he did mention that Douglas was attending college.
According to petitioner, his ex-wife also contributed to Douglas' support during this year. Petitioner offered no evidence of amounts that were contributed to Douglas' support by him, his ex- wife, or other sources. Petitioner did not 1998 Tax Ct. Memo LEXIS 384">*394 testify whether Douglas was employed.
If a child receives over half of his support for the calendar year from his parents who are divorced, separated, or live apart for the last 6 months of the year, and further, if the child is in the custody of one or both parents for more than half of the calendar year, then
Petitioner's ex-wife was granted sole legal and physical custody of the children pursuant to the divorce. In any event, petitioner has not established that he provided more than one-half of Douglas' support, and petitioner 1998 Tax Ct. Memo LEXIS 384">*395 is not entitled to an exemption deduction for him. Respondent is sustained on this issue.
HEAD-OF-HOUSEHOLD FILING STATUS
In 1994, petitioner claimed head-of-household filing status on his return. Petitioner testified that he should not be discriminated against because of his filing status and should not be taxed differently from any other individual. Petitioner also stated that since he was paying child support, he should be entitled to head-of-household filing status. Douglas lived in Aliso Viejo with his mother while he attended college nearby. In the notice of deficiency, respondent changed petitioner's filing status to single.
In order to qualify for head-of-household filing status, petitioner must satisfy the requirements of
Petitioner, although unmarried in 1994, has not met the requirements to file as head-of-household. Petitioner did not maintain the requisite household for Douglas; petitioner's ex-wife maintained the Aliso Viejo residence.
To address petitioner's argument that it is discriminatory to tax individuals differently, we observe that the constitutionality of different tax rates for differently situated taxpayers has been consistently upheld.
Accordingly, we sustain respondent on this issue.
ADDITION TO TAX UNDER
Respondent received petitioner's 1994 tax return on August 18, 1995. The tax return was due April 15, 1995. Sec. 6072(a). Petitioner contends that he timely filed Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, requesting a 4-month extension for filing his 1994 tax return. Petitioner provided a copy of this form, dated April 15, 1995, to the Court. Petitioner did not provide 1998 Tax Ct. Memo LEXIS 384">*397 any proof of mailing this request. Respondent contends that the Internal Revenue Service never received the request and that petitioner's tax return was not timely filed.
ACCURACY-RELATED PENALTY
Respondent determined an accuracy-related penalty under
Petitioner has not presented evidence to show that he had reasonable cause to claim the expenses on Schedule A, the dependency exemption deduction for his son, or head-of-household filing status. Therefore, we find that petitioner is liable for the accuracy-related penalty under
To reflect the foregoing,
Decision will be entered for respondent.
1. Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the year at issue. All Rule references are to the Tax Court Rules of Practice and Procedure.↩
2. At the conclusion of trial, the Court set a schedule for the parties to file seriatim briefs. Petitioner did not file a brief. We could declare petitioner in default and dismiss his case. Rule 123;
3. This is the amount that exceeds 7.5 percent of adjusted gross income.↩
4. This amount includes California State income tax withheld of $ 1,352.45, California State disability insurance withheld of $ 412.97, and "buyer's taxes", which petitioner estimated at $ 750. Petitioner agrees that "buyer's taxes" are the equivalent of a sales tax.↩
5. This amount includes Social Security tax withheld of $ 2,456.26, Medicare tax withheld of $ 574.45, and Social Security benefits allegedly repaid by petitioner of $ 905.↩
6. This is after the 2 percent of adjusted gross income limitation. Petitioner did not state on his return what these expenses encompassed.↩
7.
(a) General Rule. -- No deduction shall be allowed for the following taxes:
(1) Federal income taxes, including --
(A) the tax imposed by section 3101 (relating to the tax on employees under the Federal Insurance Contributions Act); ↩
William G. Barter, Wanda B. Barter, Ralph D. Blair and ... , 550 F.2d 1239 ( 1977 )
Judith Kaye Jansen v. United States , 567 F.2d 828 ( 1977 )
Lois Anderson v. United States , 966 F.2d 487 ( 1992 )
Lee E. Coombs and Judy B. Coombs v. Commissioner of ... , 608 F.2d 1269 ( 1979 )
Dorothy Shinder v. Commissioner of Internal Revenue , 395 F.2d 222 ( 1968 )
Commissioner v. Flowers , 66 S. Ct. 250 ( 1946 )
Peurifoy v. Commissioner , 79 S. Ct. 104 ( 1958 )
Tucker v. Commissioner , 55 T.C. 783 ( 1971 )