Taxpayers remain burdened despite shifted burden of proof
Article Abstract:
The 1998 IRS Restructuring and Reform Act shifts the burden of proof from the taxpayer to the IRS and removes the presumption of correctness previously enjoyed by the IRS. To understand the impact of this change, tax professionals should understand the twofold meaning of burden of proof, namely the burden of production and the burden of persuasion. The burden of production requires the submission of some evidence supporting a position. When the burden of production is satisfied, the burden of persuasion applies. If the positions of both sides are equally convincing, the side without the burden is upheld. Based on Sec 7491, the burden of persuasion is shifted to the IRS only if the taxpayer is able to satisfy the burden of production. The burden of production is met by complying with substantiation requirements, maintaining all records, cooperating with the IRS and, for organizations, meeting the net worth limitations in attorney's fees.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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Estate planning remains critical despite law changes
Article Abstract:
The increase in unified credit introduced in the TRA 1997 does not reduce the need for estate and gift planning. The appreciation of most property, the gradual enforcement of the credit and the non-adjustment of the credit to inflation are some of the reasons why estate and gift planning are still needed, particularly by taxpayers with assets surpassing the current tax-free transfer amount. Although the higher unified credit will not obviate estate planning, TRA 1997 includes a provision on the new capital gains tax rates that may be helpful in estate planning. This is applicable to lifetime gift-giving, which allows the use of the $10,000 annual gift tax exclusion and removal of the future appreciation of the property from the estate. Lifetime gift-giving strategies such as gifts in trust and family limited partnerships are discussed.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 1999
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How much has the burden of proof really shifted?
Article Abstract:
The author discusses the limitations of the burden of proof shift to the IRS in tax controversies under the IRS Restructuring and Reform Act of 1998. Many requirements must be met by taxpayers as a condition of the shift, which the author believes ultimately is one more of form than of substance.
Publication Name: Practical Tax Strategies
Subject: Law
ISSN: 0040-0165
Year: 2000
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