Burden of Proof in Tax Cases refers to the responsibility of a party to prove their assertions in a tax dispute. In the context of tax cases, it typically lies with the taxpayer when they challenge the IRS’s position or findings.
In tax litigation, the burden of proof determines who must provide evidence to support their claims. For instance, if a taxpayer disputes a tax deficiency asserted by the IRS, the taxpayer must present sufficient evidence to support their position. Conversely, if the IRS is claiming fraud or negligence, they must meet a higher burden of proof to substantiate their claims against the taxpayer.
The burden of proof can vary depending on the type of tax case. For example, in cases involving unreported income, the IRS may only need to show that it has reasonable grounds to believe that income is unreported, while the taxpayer must then provide evidence of their actual income.
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