by Stephen G. Salley and Anthony J. Scaletta Click here for the original, which appeared in the Fall 2003 issue of the Florida Bar Journal. As part of the Internal Revenue Service Restructuring and Reform Act of 1998, Congress enacted new Internal Revenue Code §7491(a). This “new” statute provides, in part, that if a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer’s liability, and has complied with certain substantiation and record-keeping requirements imposed by the Internal Revenue Code, then the burden of proof in any court proceeding with respect to such issue is on the Internal Revenue Service.1 The new statute applies to court proceedings arising in connection with examinations beginning after July 22, 1998.2 Given the time it takes for a tax audit to move from initial administrative examination to litigation, to date there have been few published opinions interpreting §7491(a), a provision in the law for nearly four years. The U.S. Tax Court, in
Burden of Proof, U.S. Tax Court, and I.R.C. §7491
Burden of Proof, U.S. Tax Court, and I.R.C…
Burden of Proof, U.S. Tax Court, and I.R.C. §7491
by Stephen G. Salley and Anthony J. Scaletta Click here for the original, which appeared in the Fall 2003 issue of the Florida Bar Journal. As part of the Internal Revenue Service Restructuring and Reform Act of 1998, Congress enacted new Internal Revenue Code §7491(a). This “new” statute provides, in part, that if a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer’s liability, and has complied with certain substantiation and record-keeping requirements imposed by the Internal Revenue Code, then the burden of proof in any court proceeding with respect to such issue is on the Internal Revenue Service.1 The new statute applies to court proceedings arising in connection with examinations beginning after July 22, 1998.2 Given the time it takes for a tax audit to move from initial administrative examination to litigation, to date there have been few published opinions interpreting §7491(a), a provision in the law for nearly four years. The U.S. Tax Court, in