§ 7491. Burden of proof
(a)
Burden shifts where taxpayer produces credible evidence
(1)
General rule
If, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B, the Secretary shall have the burden of proof with respect to such issue.
(2)
Limitations
Paragraph (1) shall apply with respect to an issue only if—
(B)
the taxpayer has maintained all records required under this title and has cooperated with reasonable requests by the Secretary for witnesses, information, documents, meetings, and interviews; and
(C)
in the case of a partnership, corporation, or trust, the taxpayer is described in section
7430
(c)(4)(A)(ii).
(b)
Use of statistical information on unrelated taxpayers
In the case of an individual taxpayer, the Secretary shall have the burden of proof in any court proceeding with respect to any item of income which was reconstructed by the Secretary solely through the use of statistical information on unrelated taxpayers.
(c)
Penalties
Notwithstanding any other provision of this title, the Secretary shall have the burden of production in any court proceeding with respect to the liability of any individual for any penalty, addition to tax, or additional amount imposed by this title.