Burden of Proof in Tax Court
The general rule that a taxpayer bears the burden of proving the IRS's deficiency determination is incorrect, subject to a statutory shift to the IRS under Section 7491 where the taxpayer produces credible evidence and satisfies recordkeeping and cooperation requirements.
The IRS's deficiency determination carries a presumption of correctness, and the default rule places the burden on the taxpayer to prove the determination wrong by a preponderance of the evidence. Section 7491 shifts that burden to the IRS for factual issues if the taxpayer introduces credible evidence relevant to the issue, has complied with substantiation and recordkeeping requirements, and has cooperated with reasonable IRS requests, though the shift applies only to individual taxpayers and, for entities, only those meeting a net worth limitation.
Certain issues follow their own distinct burden rules regardless of Section 7491. The IRS always bears the burden of proving fraud by clear and convincing evidence, a substantially higher standard than the ordinary preponderance standard, reflecting fraud's more serious consequences, including the absence of a limitations period on assessment and enhanced civil penalties.
Because the party bearing the burden, and the applicable standard, can differ issue-by-issue within the same case — ordinary deficiency items on the taxpayer, a fraud allegation on the IRS by clear and convincing evidence — Juricratic models burden allocation at the issue level rather than case-wide, consistent with how the platform treats burden-of-proof generally as a per-claim dial rather than a single case-level setting.
How it actually shows up
Counsel preparing a Tax Court case maps which specific issues carry the default taxpayer burden, which might qualify for the Section 7491 shift based on the taxpayer's recordkeeping and cooperation, and which, like any fraud allegation, place the burden on the IRS at a heightened standard, since that mapping shapes both discovery priorities and trial preparation.
- Who normally has the burden of proof in a Tax Court deficiency case?
- The taxpayer, who must prove the IRS's determination is incorrect by a preponderance of the evidence, since the determination carries a presumption of correctness.
- When does the burden shift to the IRS?
- Under Section 7491, on factual issues where the taxpayer introduces credible evidence, has complied with substantiation and recordkeeping requirements, and has cooperated with reasonable IRS requests.
- What standard applies if the IRS alleges fraud?
- The IRS bears the burden of proving fraud by clear and convincing evidence, a higher standard than the ordinary preponderance standard used for most deficiency issues.
This page is an educational explainer, not legal advice, and creates no attorney–client relationship. Juricratic is a simulation engine: every probability-like figure is a dial you set, not a calibrated prediction. Verify every rule, deadline, and figure against the authorities and orders that govern your matter.
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