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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.
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