- 5 - factual issues.5 Prince v. Commissioner, T.C. Memo. 2003-247. The legislative history of section 7491(a) clarifies that taxpayers must prove that they have complied with the record- keeping, substantiation, and cooperation requirements before that section places the burden of proof upon the Commissioner.6 H. Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747, 993 (“The taxpayer has the burden of proving that it meets each of these 5 The relevant language of sec. 7491 provides: 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; * * * 6 The text of the statute requires that the taxpayer satisfy the remaining (credible evidence) requirement as a condition of placing the burden of proof upon respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011