26 U.S.C. § 7454 — Burden of proof in fraud, foundation manager, and transferee cases
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 246 words · no verdicts yet
In specified Tax Court disputes, the Secretary has the burden of proving fraud or certain knowing acts by foundation, trust, or organization managers. A cross-reference points to the rule for transferee liability.
(a) Fraud. In a proceeding about whether the petitioner committed fraud intending to evade tax, the Secretary* has the burden of proof on that issue. (b) Foundation managers. In a proceeding about whether a foundation manager knowingly participated in specified self-dealing, a jeopardizing investment, or an agreed taxable expenditure, or whether specified trust or organization managers knowingly participated in the listed self-dealing, taxable-expenditure, political-expenditure, lobbying, or excess-benefit transactions, the Secretary has the burden of proof. The referenced terms keep their meanings under sections 4941, 4944, 4945, 4951, 4952, 4955, 4912, and 4958, and this section does not define them. (c) Cross-reference. Section 6902(a) contains the rule about the burden of proof for transferee liability.
In any proceeding involving the issue whether the petitioner has been guilty of fraud with intent to evade tax, the burden of proof in respect of such issue shall be upon the Secretary*.
In any proceeding involving the issue whether a foundation manager (as defined in section 4946(b)) has “knowingly” participated in an act of self-dealing (within the meaning of section 4941), participated in an investment which jeopardizes the carrying out of exempt purposes (within the meaning of section 4944), or agreed to the making of a taxable expenditure (within the meaning of section 4945), or whether the trustee of a trust described in section 501(c)(21) has “knowingly” participated in an act of self-dealing (within the meaning of section 4951) or agreed to the making of a taxable expenditure (within the meaning of section 4952), or whether an organization manager (as defined in section 4955(f)(2)) has “knowingly” agreed to the making of a political expenditure (within the meaning of section 4955), or whether an organization manager (as defined in section 4912(d)(2)) has “knowingly” agreed to the making of disqualifying lobbying expenditures within the meaning of section 4912(b), or whether an organization manager (as defined in section 4958(f)(2)) has “knowingly” participated in an excess benefit transaction (as defined in section 4958(c)), the burden of proof in respect of such issue shall be upon the Secretary.
For provisions relating to burden of proof as to transferee liability, see section 6902(a).
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 884; Pub. L. 91–172, title I, § 101(j)(57), Dec. 30, 1969, 83 Stat. 532; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–227, § 4(d)(7), Feb. 10, 1978, 92 Stat. 23; Pub. L. 96–222, title I, § 108(b)(3)(B), Apr. 1, 1980, 94 Stat. 226; Pub. L. 100–203, title X, §§ 10712(c)(6), 10714(b), Dec. 22, 1987, 101 Stat. 1330–467, 1330–471; Pub. L. 104–168, title XIII, § 1311(c)(5), July 30, 1996, 110 Stat. 1478; Pub. L. 104–188, title I, § 1704(t)(43), Aug. 20, 1996, 110 Stat. 1889; Pub. L. 115–141, div. U, title IV, § 401(a)(329), Mar. 23, 2018, 132 Stat. 1200.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
- 1969Amended · Pub. L. 91-172 · 83 Stat. 532
- 1976Amended · Pub. L. 94-455 · 90 Stat. 1834
- 1978Amended · Pub. L. 95-227 · 92 Stat. 23
- 1980Amended · Pub. L. 96-222 · 94 Stat. 226
- 1987Amended · Pub. L. 100-203 · 101 Stat. 1330
- 1996Amended · Pub. L. 104-168 · 110 Stat. 1478
- 1996Amended · Pub. L. 104-188 · 110 Stat. 1889
- 2018Amended · Pub. L. 115-141 · 132 Stat. 1200
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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