Internal Revenue Code:Rule 142. Burden of Proof

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      TITLE 26 - APPENDIX
       TITLE XIV. - TRIALS
     

Statute

    Rule 142. Burden of Proof
 
      (a) General: The burden of proof shall be upon the petitioner,
    except as otherwise provided by statute or determined by the Court;
    and except that, in respect of any new matter, increases in
    deficiency, and affirmative defenses, pleaded in the answer, it
    shall be upon the respondent.  As to affirmative defenses, see Rule
    39.
      (b) Fraud: In any case involving the issue of fraud with intent
    to evade tax, the burden of proof in respect of that issue is on
    the respondent, and that burden of proof is to be carried by clear
    and convincing evidence.  Code Section 7454(a).
      (c) Foundation Managers; Trustees; Organization Managers: In any
    case involving the issue of the knowing conduct of a foundation
    manager as set forth in the provisions of Code Section 4941, 4944,
    or 4945, or the knowing conduct of a trustee as set forth in the
    provisions of Code Section 4951 or 4952, or the knowing conduct of
    an organization manager as set forth in the provisions of Code
    Section 4912 or 4955, the burden of proof in respect of such issue
    is on the respondent, and such burden of proof is to be carried by
    clear and convincing evidence.  Code Section 7454(b).
      (d) Transferee Liability: The burden of proof is on the
    respondent to show that a petitioner is liable as a transferee of
    property of a taxpayer, but not to show that the taxpayer was
    liable for the tax.  Code Section 6902(a).
      (e) Accumulated Earnings Tax: Where the notice of deficiency is
    based in whole or in part on an allegation of accumulation of
    corporate earnings and profits beyond the reasonable needs of the
    business, the burden of proof with respect to such allegation is
    determined in accordance with Code Section 534. If the petitioner
    has submitted to the respondent a statement which is claimed to
    satisfy the requirements of Code Section 534(c), the Court will
    ordinarily, on timely motion filed after the case has been
    calendared for trial, rule prior to the trial on whether such
    statement is sufficient to shift the burden of proof to the
    respondent to the limited extent set forth in Code Section
    534(a)(2).
      (f) Other: For the burden of proof in cases submitted without
    trial, see Rule 122(b); in declaratory judgment actions, see Rule
    217(c); in disclosure actions, see Rule 229; in claims for
    litigation and administrative costs, see Rule 232(e); and in
    administrative costs actions, see Rule 270(d).
                             INTERIM AMENDMENT
        For interim amendment of this Rule, see provisions set out
      after the Appendices to the Rules.
 

Miscellaneous

                        EFFECTIVE DATE OF AMENDMENT
      Amendment of par. (f) with respect to litigation and
    administrative costs effective with respect to proceedings
    commenced after July 30, 1996.