In one recent federal court case, a nonresident alien taxpayer claimed deductions from taxable income for multiple personal exemptions. The IRS denied them. The taxpayer argued in court that the Tax Cuts and Jobs Act had made everyone other than nonresident aliens ineligible for several personal exemptions. Not surprisingly, the court disagreed with this interpretation of the law and Rev. Code Sec. 151, which provides only limited personal exemptions for all filers. The court allowed the taxpayer one personal exemption which, in effect, eliminated the refund he had claimed was owed him. (Bell, U.S. Court of Federal Claims, 1/25/24)
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