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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”, and
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