The Nis Family Trust - Page 23




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            7491 pertinent to this case are set forth in the margin.4  Among                           
            other things, section 7491 provides that, in any court                                     
            proceeding, the burden of proof as to any factual issue is on the                          
            Secretary where the taxpayer, who has satisfied certain other                              

                  4  SEC. 7491.  BURDEN OF PROOF                                                       
                  (a) Burden Shifts Where Taxpayer Produces Credible                                   
                  Evidence.--                                                                          
                  (1) General rule.  If, in any court proceeding, a                                    
                  taxpayer introduces credible evidence with respect to                                
                  any factual issue relevant to ascertaining the                                       
                  liability of the taxpayer for any tax imposed by                                     
                  subtitle A or B, the Secretary shall have the burden of                              
                  proof with respect to such issue.                                                    
                  (2) Limitations.  Paragraph (1) shall apply with                                     
                  respect to an issue only if--                                                        
                        (A) the taxpayer has complied with the                                         
                        requirements under this title to substantiate                                  
                        any item;                                                                      
                        (B) the taxpayer has maintained all records                                    
                        required under this title and has cooperated                                   
                        with reasonable requests by the                                                
                        Secretary for witnesses, information,                                          
                        documents, meetings, and interviews; and                                       
                        (C) in the case of a partnership,                                              
                        corporation, or trust, the taxpayer is                                         
                        described in section 7430(c)(4)(A)(ii).                                        
                              *  *  *  *  *  *                    *                                    
                  (c) Penalties.                                                                       
                              Notwithstanding any other provision of                                   
                        this title, the Secretary shall have the                                       
                        burden of production in any court proceeding                                   
                        with respect to the liability of any                                           
                        individual for any penalty, addition to tax,                                   
                        or additional amount imposed by this title.                                    





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Last modified: May 25, 2011