26 U.S.C. § 7454: Burden of proof in fraud, foundation manager, and transferee cases

§ 301.7454-1 Burden of proof in fraud and transferee cases.§ 301.7454-2 Burden of proof in foundation manager, etc. cases.

Amended 1969

1969 Pub. L. 91-172 Pub. L. 91–172 inserted “, foundation manager” in section catchline.
1969 Pub. L. 91-172 Subsecs (b), (c). Pub. L. 91–172 added subsec. (b) and redesignated former subsec. (b) as (c).

Cases: Beaver v. Commissioner, 55 T.C. 85 (1970)

(a) Fraud 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.

Amended 1976

1976 Pub. L. 94-455 Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Cases: BASR Partnership v. United States, 795 F.3d 1338 (Fed. Cir. 2015); Smith v. Commissioner, 91 T.C. 1049 (1988)

(b) Foundation managers 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.

Amended 1976, 1978, 1980, 1987, 1996, 2018

2018 Pub. L. 115-141 Pub. L. 115–141 substituted “4955),” for “4955),,”.
1996 Pub. L. 104-188 Pub. L. 104–188 substituted “section 4955(f)(2)” for “section 4955(e)(2)”.
1996 Pub. L. 104-168 Pub. L. 104–168 inserted “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)),” after “section 4912(b),”.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10714(b), substituted “, 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), the burden of proof” for “the burden of proof”.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10712(c)(6), substituted “or whether an organization manager (as defined in section 4955(e)(2)) has ‘knowingly’ agreed to the making of a political expenditure (within the meaning of section 4955), the burden of proof” for “the burden of proof”.
1980 Pub. L. 96-222 Pub. L. 96–222 substituted “section 501(c)(21)” for “section 502(c)(21)”.
1978 Pub. L. 95-227 Pub. L. 95–227 inserted provision relating to trustees of a trust described under section 502(c)(21) of this title.
1976 Pub. L. 94-455 Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

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