Burden of Proof in Tax Court

Generally the taxpayer bears the burden of proof that the 90 day letter was incorrect. However, IRC §7491(a) paces the burden for proof on the commissioner if the taxpayer:

1. introduce credible evidence with respect to any factual issue relevant to ascertain his liability,
2. has complies with substantiation requirements,
3. has maintained all records, required, and
4. has cooperated with reasonable request for witnesses, information, document, meetings, and interviews.

Generally those who file have made these admissions and not able to use this burden shifting law. However, non-filers can use this new law effectively in tax court. But they must continually make an offer for an out of court settlement.

Clarkson advises you to put a request for a negotiated settlement in all your correspondence and pleadings in a tax court case.