APPEAL OF PROPOSED DEFICIENCY
MS. JANE J. JONES
Submitted by:
Student’s name, Student Attorney
Georgia State University College of Law
Philip C. Cook Low-Income Taxpayer Clinic
P.O. Box 4037, Atlanta, GA 30302-4037
Ph. (404) 413-9230
Fax (404) 413-9229
e-mail: taxclinic@gsulaw.gsu.edu
TABLE OF CONTENTS
Relief Requested .......................................................................................... .3
Procedural Background Of Matter................................................................. .3
Statement Of Facts ....................................................................................... .4
Applicable Law .............................................................................................. 5
Application Of The Law To The Facts..............................................................6
Conclusion……………………………………………………………………………6
Exhibits
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
2007 Tax Return
Letter from IRS dated October 12, 2007
Notice of Proposed Change to 2007 Tax Return
Statutory Notice of Deficiency
Jones Petition
Entry of Appearance
Power of Attorney
Birth Certificate of Dependent Child
2007 School Records
Medical Records
Utility Statement Regarding Continuous Service
Immigration Employment Authorization Request
Social Security Cards
Marriage Certificate
Auto Insurance Statement
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APPEAL OF PROPOSED DEFICIENCY
RELIEF REQUESTED
Include in this section:
 Relief requested
 Section of code applicable
 Tax year request applies to
Jane J. Jones respectfully requests the Internal Revenue Service to reconsider its
denial of her Earned Income Credit under I.R.C. § 32 and Head of Household filing status
under § 2 for the tax year 2007 and to eliminate the proposed deficiency for that year.
Ms. Jones was entitled to Earned Income Credit (“EITC”) and Head of Household filing
status for that tax year because she satisfied all requirements for these items.
PROCEDURAL BACKGROUND OF TAX MATTER
Include the following information in this section:
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Filing history of the year or years at issue
Brief discussion of issues that gave rise to the liability
Discussion of the issuance of the notice or IRS correspondence that
triggered this memo and who in the IRS issued it (Examination, Appeals,
Collections) and include a copy
Discussion of whether the client or the Clinic filed something to give rise to
this memo, e.g. who filed or entered an appearance in Tax Court, the date of
Counsel’s Answer, etc… and whether the Clinic entered an entry of
appearance and the date of Counsel’s Answer.
Discussion of where current jurisdiction lies (Appeals, Counsel or
Collections) and what transpired at lower level of IRS.
Ms. Jones timely filed her 2006 federal income tax return. (Attached as Exhibit A
is a copy of the 2006 Federal Individual Income Tax Return). She filed as Head of
Household. She had sufficient withholding and received a refund of $1,000.00. Ms.
Jones claimed the EITC and additional child tax credit. The Internal Revenue Service
selected his return for examination. (Attached as Exhibit B is a copy of the initial contact
with Ms. Jones). During the course of that examination, the Service disallowed Ms.
Jones’s filing status as Head of Household substituting “Single” and disallowed the EITC
and additional child care credit. (Attached as Exhibit C is a copy of the examination
changes detailing the disallowances dated November 1, 2007). Ms. Jones was asked to
provide additional documentation. However, Ms. Jones did not timely respond to requests
for that documentation. The Earned Income Credit Ms. Jones claimed for 2007 was then
denied in a letter dated December 15, 2007, and, as a result, Ms. Jones was notified on
January 2, 2008 in a Statutory Notice of Deficiency that the Service was proposing an
additional deficiency for the year 2006 in the amount of $3,567.00 and penalties and
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addition to tax under I.R.C. section 6651(a)(1) based on the same disallowances stated in
the IRS letter dated November 1, 2007. (Attached as exhibit D is a copy of the statutory
notice of deficiency). Based on the statutory notice, Ms. Jones filed a Petition with the
United States Court timely. (Attached as Exhibit E is a copy of Ms. Jones’s Petition). The
Office of Chief Counsel filed an answer to the petition on January 1, 2008.
Subsequently, he contacted the Philip C. Cook Low Income Ms. Jones Clinic and
requested our assistance. We filed an entry of appearance a copy of which was served
on Chief Counsel. (Attached as Exhibit F is a copy of the Entry of Appearance). We have
also included a copy of the Clinic’s Power of Attorney as Exhibit G.
Since Examination issued the Notice of Deficiency, settlement jurisdiction lies with
Appeals. Appeals has not yet considered this case.
STATEMENT OF FACTS
Include the following information in this section:
 Complete discussion of Ms. Jones and his/her situation in the year(s) the
liability arose and currently, including age, health, education, employment,
living arrangements (rent or own), family members living with Ms. Jones or
in area, and any facts that may be important with respect to the relief that is
being requested. Cover why the liability arose, ability of Ms. Jones to pay
liability, etc.
 Have supporting documents and, whenever one exits and it is referred to, be
sure that it is described, e.g. “Attached as Exhibit X is a copy of the lease
that the Ms. Jones entered into showing that the Ms. Jones lived at the
premises during the period of ____ to ____.”
Ms. Jones is a lawful permanent resident of the United States, having emigrated
from El Salvador in 2000. She has a valid social security number, which is XXX-XXXXXX. [See Exhibit I, Social Security Card for Ms. Jones]. Ms. Jones’ 2007 Tax Return
indicates that she worked as a “painter” and earned an Adjusted Gross Income [AGI] for
2007 of $9,999. [See Exhibit B, Ms. Jones’s 2007 Tax Return]. Ms. Jones’ original return
was prepared for her by the Hispanic Services Foundation which mistakenly entered Ms.
Jones’s filing status as “Single” rather than “Head of Household.” [See Exhibit B, Ms.
Jones’s 2007 Tax Return]. During the tax year in question, Ms. Jones was unmarried but
her daughter, Ms. Jones’s dependent, resided with her. Additionally, Ms. Jones shared
her residence with her spouse, whom she married in 2006. [See Exhibit J, Ms. Jones and
Mr. Jones’ spouse’s Marriage Certificate]. Ms. Jones’ residence in 2007 was rented
space in the basement at Address. [See Exhibit F, Medical Records for Ms. Jones’
dependent in 2007 indicating residential address at Address; Exhibit H, Immigration
Employment Authorization Request for Ms. Jones evincing Address as residential
address; Exhibit K, Auto Insurance Statement indicating address].
Ms. Jones is the biological mother and Mr. Jones’ spouse is the biological father of
Ms. Jones’s dependent, an American citizen born on June xx, 19xx in Marietta, Georgia
with a valid social security number, xxx-xx-xxxx, who resided with Ms. Jones during 2007.
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[See Exhibit D, Birth Certificate of Ms. Jones’s dependent; Exhibit F, Medical Records for
Ms. Jones’s dependent showing address; and Exhibit I, Social Security Card for Ms.
Jones’s dependent]. Ms. Jones’s dependent was seven years old in 2007. She was
enrolled in elementary school, and her Report Cards for the year 2007 shows that Ms.
Jones enrolled Ms. Jones’s dependent at School Name, which is the closest school
geographically to Street Address, Ms. Jones’s residence, and in the same school district
as that residence. [See Exhibit E, 2007 School Records for Ms. Jones’s dependent].
Ms. Jones was the sole provider for Ms. Jones’ dependent and Ms. Jones’ spouse
for the entire tax year in 2007, paying rent, utilities, and other support. [See Exhibit B, Ms.
Jones’s 2007 Tax Return; Exhibit G, Utility Bill Statement from Georgia Power stating Ms.
Jones has maintained continuous service from March 2000 through May 2008]. Ms.
Jones’s spouse did not work outside of the home throughout 2007 and stayed home with
Ms. Jones’ dependent. [See Exhibit B, Ms. Jones’s 2007 Tax Return showing no earned
income for Ms. Jones’ spouse; and Exhibit D, Birth Certificate for Ms. Jones’s dependent
indicating Ms. Jones’s dependent was not of school age]. Ms. Jones’s spouse’s Social
Security Number is xxx-xx-xxxx. [See Exhibit I, Social Security Card for Ms. Jones’s
spouse].
DISCUSSION OF APPLICABLE LAW
Under this section don’t add new facts, only law. The section should begin with
statutory references, then cases, then regulations, then other authority.
Head of Household:
I.R.C. § 2 defines “Head of Household.” Pursuant to I.R.C. § 2(b), a Ms. Jones is
entitled to Head of Household filing status if he [1] is not married at the close of the
taxable year, and [2] paid more than half the cost of maintaining a home that was his
principal home and the principal place of abode for more than one-half of the taxable year
for any of the following:
[a] A qualifying child of the Ms. Jones as defined in I.R.C. § 152(c) (discussed below and
determined without regard to I.R.C. § 152(e)), provided the child is not both [a] married
and [b] an individual who satisfies other requirements in I.R.C. § 2(b)(1)(A)(i).
[b] Any other relative of the Ms. Jones eligible to be claimed as a dependent under §152,
except those eligible to be claimed under a multiple support agreement.
Earned Income Tax Credit:
I.R.C. § 32 provides than an eligible individual may take an Earned Income Tax
Credit (“EITC”) against his or her earned income for the taxable year. An eligible
individual includes “any individual who has a qualifying child for the taxable year.” For
purposes of I.R.C. § 32, the term “qualifying child” includes an unmarried qualifying child
of the Ms. Jones as defined in I.R.C. § 152(c) (discussed below and determined without
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regard to I.R.C. § 152(c)(1)(D) and (e)), provided [1] the Ms. Jones includes the name,
age and TIN of the child on the tax return for the relevant taxable year, and [2] the joint
principal place of abode for the Ms. Jones and qualifying child for more than one-half of
the year is in the United States.
To be considered a qualifying child under I.R.C. § 152(c), an individual must [1]
bear a relationship to the Ms. Jones (discussed below), [2] have the same principal place
of abode as the Ms. Jones for more than one-half of the taxable year, [3] be under the
age of 19 or, if a student, the age of 24, [4] not have provided over one-half of the
individual’s own support for the taxable year, and [5] not have filed a joint return with the
individual’s spouse for the taxable year. An individual who bears a qualifying relationship
with Ms. Jones is either “(A) a child of the Ms. Jones or a descendant of such a child, or
(B) a brother, sister, stepbrother, or stepsister of the Ms. Jones or a descendant of any
such relative.” I.R.C. § 152(c)(2). The Code provides special rules in cases in which an
individual is a qualifying child of more than one Ms. Jones. I.R.C. § 152(c)(4).
I.R.C. § 32 precludes a Ms. Jones from claiming the EITC if the individual does not
include his valid social security number on his income tax return and, if married, the valid
social security number of his spouse. A valid social security number is one that allows
the Ms. Jones to work. I.R.C. § 32 precludes a Ms. Jones from claiming the EITC if he is
a qualifying child of another person. I.R.C. § 32 precludes a Ms. Jones from claiming the
EITC if the Ms. Jones claims the benefits of I.R.C. § 911 (relating to citizens or residents
living abroad) for the taxable year. I.R.C. § 32 further stipulates that a Ms. Jones must
have earned income during the year for which he claims the EITC and must be a U.S.
citizen or resident alien the entire year for which he claims the EITC. Finally, I.R.C. § 32
precludes a Ms. Jones from claiming the EITC if the individual’s filing status is “Married
Filing Separately,” or the individual’s investment income for the taxable year exceeds
$2200.
CONCLUSION
Ms. Jones respectfully submits that she is entitled to receive the Earned Income
Tax Credit with one qualifying child and Head of Household filing status for the tax year
2007.
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