-15-
The Commissioner’s determinations are generally presumed
correct, and the taxpayer bears the burden of proving that the
Commissioner’s determinations are in error. See Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933). Section 7491(a)
shifts the burden of proof to the Commissioner, however, with
respect to a factual issue relevant to a taxpayer’s liability for
tax under certain circumstances. The burden shifts to the
Commissioner if the taxpayer introduces credible evidence with
respect to the issue and meets the other requirements of section
7491(a). Sec. 7491(a)(2)(A) and (B).4
Credible evidence is defined as the quality of evidence
which, after critical analysis, we would find sufficient upon
which to base our decision. Higbee v. Commissioner, 116 T.C.
438, 442 (2001); H. Conf. Rept. 105-599, at 240-241 (1998), 1998-
3 C.B. 747, 994-995. Evidence will not meet this standard if we
are unconvinced it is worthy of belief. H. Conf. Rept. 105-599,
supra at 241, 1998-3 C.B. at 995. Moreover, we are not compelled
to believe evidence that seems improbable or to accept as true
uncorroborated, although uncontradicted, evidence by interested
witnesses. Blodgett v. Commissioner, 394 F.3d 1030, 1036 (8th
Cir. 2005) (quoting Marcella v. Commissioner, 222 F.2d 878, 883
4Sec. 7491 is effective with respect to court proceedings
arising in connection with examinations by the Commissioner
commencing after July 22, 1998, the date of enactment of the
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(a), 112 Stat. 726.
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Last modified: November 10, 2007