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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 of proof,
petitioner must maintain all records required by the Code and
regulations and cooperate with reasonable requests by the
Secretary for witnesses, information, documents, meetings, and
interviews. Sec. 7491(a)(2).
Petitioner did not satisfy the prerequisites under section
7491(a)(1) and (2) to shift the burden of proof to respondent.
Consequently, except for any penalties subject to section
7491(c), as to which respondent bears the initial burden of
production, the general premise of Rule 142(a) remains
applicable.
B. Bank Deposits Method for Computing Taxable Income
The IRS has broad powers under section 446 to compute the
taxable income of a taxpayer. Sec. 446; Petzoldt v.
Commissioner, 92 T.C. 661, 639 (1989). Generally, such
computation is made using the taxpayer’s regularly employed
method of accounting. Sec. 446(a). If the taxpayer’s method of
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