- 19 - Cir. 2002); see also Gallick v. Baltimore & O.R. Co., 372 U.S. 108, 114-115 (1963); Boehm v. Commissioner, 326 U.S. 287, 293 (1945); Wilmington Trust Co. v. Helvering, 316 U.S. 164, 167-168 (1942). We decide whether evidence is credible on the basis of objective facts, the reasonableness of the testimony, and the demeanor of the witness. Quock Ting v. United States, 140 U.S. 417, 420-421 (1891); Wood v. Commissioner, 338 F.2d 602, 605 (9th Cir. 1964), affg. 41 T.C. 593 (1964); Pinder v. United States, 330 F.2d 119, 124-125 (5th Cir. 1964); Concord Consumers Hous. Coop. v. Commissioner, 89 T.C. 105, 124 n.21 (1987). We have evaluated each witness’s testimony by observing his or her candor, sincerity, and demeanor and by assigning weight to the elicited testimony. See Neonatology Associates, P.A. v. Commissioner, supra at 84. If the taxpayer substantiates the deductions claimed, this satisfies the taxpayer’s burden of proof under Rule 142. Accordingly, section 7491(a), regarding the shifting of the burden of proof with respect to the deficiencies in tax, is of little importance because if the taxpayer fails to substantiate an item, the burden of proof does not shift to the Commissioner. Sec. 7491(a)(2)(A). B. The Documentary Evidence Petitioner submitted documents entitled “1999 Summary of Gaming Activities”, “2000 Summary of Gaming Activities”, andPage: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: March 27, 2008