Juanita Doby - Page 5

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          petitioner filed as a “qualifying widow with dependent child”.              
          Petitioner’s spouse died in 1999.  On her 2000 Form 1040,                   
          petitioner did not report the $3,146.04 payments received from              
          The Equitable Benefits Payment Services pursuant to her deceased            
          husband’s PEPCO pension plan, nor did she report the IRA                    
          distributions received from Educational Systems Employees Credit            
          Union totaling $11,400.                                                     
                                     Discussion                                       
               In general, the Commissioner’s determination set forth in a            
          notice of deficiency is presumed correct.  Welch v. Helvering,              
          290 U.S. 111, 115 (1933).  In pertinent part, Rule 142(a)(1)                
          provides the general rule that “The burden of proof shall be upon           
          the petitioner”.  In certain circumstances, however, if the                 
          taxpayer introduces credible evidence with respect to any factual           
          issue relevant to ascertaining the proper tax liability, section            
          7491 places the burden of proof on the Commissioner.  Sec.                  
          7491(a)(1); Rule 142(a)(2).  Credible evidence is “‘the quality             
          of evidence which, after critical analysis, * * * [a] court would           
          find sufficient * * * to base a decision on the issue if no                 
          contrary evidence were submitted’”.2  Baker v. Commissioner, 122            
          T.C. 143, 168 (2004) (quoting Higbee v. Commissioner, 116 T.C.              

          2We interpret the quoted language as requiring the                          
          taxpayer’s evidence pertaining to any factual issue to be                   
          evidence the Court would find sufficient upon which to base a               
          decision on the issue in favor of the taxpayer.  See Bernardo v.            
          Commissioner, T.C. Memo. 2004-199.                                          





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