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OPINION
Generally, the burden of proof is on the taxpayer. See
Rule 142(a). In 1998, however, Congress enacted section 7491,
effective July 22, 1998, under which the burden of proof will be
placed on respondent if a taxpayer meets certain requirements.
See Internal Revenue Service Restructuring and Reform Act of 1998
(RRA 1998), Pub. L. 105-206, sec. 3001, 112 Stat. 685, 726.
Under section 7491(a), the burden of proof with regard to
any fact issue will be placed on respondent if the taxpayer
maintained adequate records, satisfied applicable substantiation
requirements, cooperated with respondent, and introduced during
the court proceeding credible evidence with regard to the fact
issue.
The specific relevant language of section 7491 provides as
follows:
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–-
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Last modified: May 25, 2011