Jimmy A. Prince - Page 8

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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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