- 7 - 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–-Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011