- 8 -
Nothing in the record indicates that petitioners contested the
amount of the credit card debt with MBNA. In fact, MBNA’s action
of issuing a Form 1099-C is contrary to petitioners’ contention.
Further, petitioners have not offered any documentary evidence
supporting their claims that they contested the amount of the
debt with MBNA and that through negotiations it was established
that $14,937.26 was the total amount of petitioners’ credit card
debt. It is well settled that we are not required to accept
self-serving testimony in the absence of corroborating evidence.
Lerch v. Commissioner, 877 F.2d 624, 631-632 (7th Cir. 1989),
affg. T.C. Memo. 1987-295; Niedringhaus v. Commissioner, 99 T.C.
202, 212 (1992). On the basis of the record in the present case,
we find that the amount of $6,583 was not a reduction of charges
but was, in fact, a discharge of indebtedness.
We have considered all of the other arguments made by
petitioners, and, to the extent that we have not specifically
addressed them, we conclude they are without merit.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for respondent.
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Last modified: May 25, 2011