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1005. The Court finds that Forms 1099 demonstrate that Terry
received income constituting sufficient evidence in this case.
Likewise, Form 1099-B shows that Louise Major received income
from “stocks, bonds, etc.”, and Form 1099-INT reveals that Louise
Major received income from interest. Consequently, respondent
provided sufficient evidence linking petitioners to the income
underlying the statutory notices of deficiency.8
However, section 7491 may shift the burden to respondent in
specified circumstances, for example, where the taxpayer produces
“credible evidence”. Sec. 7491(a)(1). The legislative history
of section 7491 clarifies the meaning of “credible evidence”:
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. * * * [H. Conf.
Rept. 105-599, at 240-241 (1998), 1998-3 C.B. 747, 994-
995.]
In addition, to effectuate a shift in the burden, petitioners
must also maintain all records required by the Code and
regulations thereunder and cooperate with reasonable requests by
8 This is with exception to amounts referred to supra notes
3 and 5.
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