Burden of Proof shifts in Tax Court

Credible evidence is the quality of evidence which, after
critical analysis, the court would find sufficient upon which to
base a decision on the issue 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.]"
(It will have been noticed that I speak somewhat disparagingly of the court despite its making clear that it understands and respects the important principle of law which we are discussing. This is because in citing 26 USC 7491 in its explanation, the learned court also makes clear that it is ignorant-- or embarrassingly sloppy-- regarding the actual statutes-in-force with which it deals every day. 26 USC 7491 represents a section of the federal marijuana tax, and appears to have no bearing on the instant case. However, 26 USC 6201(d), which provides for institutional obedience to the same principle, IS relevant. As explained in CtC, page 183:


"Section 6201, the first part of which we looked at earlier, contains a useful subsection if IRS recalcitrance should force anyone into court:
(d) Required reasonable verification of information returns
In any court proceeding, if a taxpayer asserts a reasonable dispute with respect to any item of income reported on an information return filed with the Secretary under subpart B or C of part III of subchapter A of chapter 61 by a third party … the Secretary shall have the burden of producing reasonable and probative information concerning such deficiency in addition to such information return.
(“Subpart B or C of part III of subchapter A of chapter 61” refers to sections 6041 - 6050S, among which are those we examined ‘Crafting A Trade Or Business Plan’ and ‘”W” Is For Weapon’; and section 6051, which we examined in ‘Lies, Damned Lies, And W-2’s’; as well as sections 6052- payment of wages in the form of group-term life insurance, and 6053- Reporting of Tips).")
To learn what constitutes the "credible evidence" to which Congress and the court refer; the legal meaning of "implausible factual assertions, frivolous claims, or tax-protestor type arguments"; why the Commissioner is obliged to rely on "information returns" and why, and how, the law must, and does, provide for their rebuttal and nullification; and everything else important to most Americans concerning our tax structure.....