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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 here to
place the burden of proof upon respondent in that petitioner has
failed to introduce during this proceeding credible evidence on
any factual issue. We note that section 7491(a) also is
inapplicable here in that we do not find that petitioner
maintained adequate records, satisfied applicable substantiation
requirements, or cooperated with the Commissioner.
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