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provides that, if the taxpayer in a court proceeding reasonably
disputes income reported on an information return and fully
cooperates with the Commissioner, the burden of producing
reasonable and probative information in addition to the
information return shifts to the Commissioner. Although, as
noted, petitioner vehemently denied receiving any payments from
Mr. Brown during 1998 in the earlier case, at the trial of this
case, petitioner took an entirely different position for the 1998
tax year, readily agreeing that he had received income payments
from Mr. Brown during 1998, contrary to what he testified in the
earlier case, but emphatically denying he had performed any
services for Mr. Brown during 1999. The evidence submitted by
respondent overwhelms petitioner's testimony. That evidence
consists of records from Mr. Brown for 1999 that describe
numerous jobs or projects for which Mr. Brown compensated
petitioner for services rendered. The documentary information
also includes what purports to be the initials of petitioner with
the dollar amounts paid for each project, the totals of which
equal the amount reported on the information return filed with
respondent. In his testimony, petitioner acknowledged his
familiarity with most of the projects identified on these
documents, and, when questioned whether he had inscribed the
initials "LB" on the documents, he testified: "I can't recall
it." Based on the preponderance of the evidence presented to the
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Last modified: May 25, 2011