- 6 - conditions, because they are necessary prerequisites to establishing that the burden of proof is on the Secretary.”). The legislative history provides further as to the term “credible evidence”, which is not defined in the statute, that Credible evidence is the quality of evidence which, after critical analysis, the court would find sufficient upon which to base a decision on the issue if no contrary evidence were submitted (without regard to the judicial presumption of IRS correctness). A taxpayer has not produced credible evidence for these purposes if the taxpayer merely makes implausible factual assertions, frivolous claims, or tax protestor-type arguments. The introduction of evidence will not meet this standard if the court is not convinced that it is worthy of belief. If after evidence from both sides, the court believes that the evidence is equally balanced, the court shall find that the Secretary has not sustained his burden of proof. [Id. at 240-241, 1998-3 C.B. at 994-995.] We have in previous cases involving section 7491 applied the definition of the term “credible evidence” as discerned from the legislative history. E.g., Higbee v. Commissioner, 116 T.C. 438, 442-443 (2001); Forste v. Commissioner, T.C. Memo. 2003-103; Managan v. Commissioner, T.C. Memo. 2001-192. We do likewise here. We conclude that section 7491(a) does not apply to place the burden of proof upon respondent in that petitioners have failed to introduce during this proceeding credible evidence on any factual issue. Petitioners’ testimony, the only evidence in the record as to this subject, lacked credibility in that it was inconsistent and incoherent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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