
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7454]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
                       Subchapter C--The Tax Court
 
                           PART II--PROCEDURE
 
Sec. 7454. Burden of proof in fraud, foundation manager, and 
        transferee cases
        

(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.

(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),,\1\ 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.
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    \1\ So in original.
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(c) Cross reference

            For provisions relating to burden of proof as to transferee 
        liability, see section 6902(a).

(Aug. 16, 1954, ch. 736, 68A Stat. 884; Pub. L. 91-172, title I, 
Sec. 101(j)(57), Dec. 30, 1969, 83 Stat. 532; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-227, 
Sec. 4(d)(7), Feb. 10, 1978, 92 Stat. 23; Pub. L. 96-222, title I, 
Sec. 108(b)(3)(B), Apr. 1, 1980, 94 Stat. 226; Pub. L. 100-203, title X, 
Secs. 10712(c)(6), 10714(b), Dec. 22, 1987, 101 Stat. 1330-467, 1330-
471; Pub. L. 104-168, title XIII, Sec. 1311(c)(5), July 30, 1996, 110 
Stat. 1478; Pub. L. 104-188, title I, Sec. 1704(t)(43), Aug. 20, 1996, 
110 Stat. 1889.)


                               Amendments

    1996--Subsec. (b). Pub. L. 104-188 substituted ``section 
4955(f)(2)'' for ``section 4955(e)(2)''.
    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--Subsec. (b). Pub. L. 100-203, Sec. 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''.
    Pub. L. 100-203, Sec. 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--Subsec. (b). Pub. L. 96-222 substituted ``section 501(c)(21)'' 
for ``section 502(c)(21)''.
    1978--Subsec. (b). Pub. L. 95-227 inserted provision relating to 
trustees of a trust described under section 502(c)(21) of this title.
    1976--Subsecs. (a), (b). Pub. L. 94-455 struck out ``or his 
delegate'' after ``Secretary''.
    1969--Pub. L. 91-172 inserted ``, foundation manager'' in section 
catchline.
    Subsecs (b), (c). Pub. L. 91-172 added subsec. (b) and redesignated 
former subsec. (b) as (c).


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-168 applicable to excess benefit 
transactions occurring on or after Sept. 14, 1995, and not applicable to 
any benefit arising from a transaction pursuant to any written contract 
which was binding on Sept. 13, 1995, and at all times thereafter before 
such transaction occurred, see section 1311(d)(1), (2) of Pub. L. 104-
168, set out as a note under section 4955 of this title.


                    Effective Date of 1987 Amendment

    Amendment by section 10712(c)(6) of Pub. L. 100-203 applicable to 
taxable years beginning after Dec. 22, 1987, see section 10712(d) of 
Pub. L. 100-203, set out as an Effective Date note under section 4955 of 
this title.
    Amendment by section 10714(b) of Pub. L. 100-203 applicable to 
taxable years beginning after Dec. 22, 1987, see section 10714(e) of 
Pub. L. 100-203, set out as an Effective Date note under section 4912 of 
this title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-222 effective as if included in the 
provisions of the Black Lung Benefits Revenue Act of 1977, Pub. L. 95-
227, see section 108(b)(4) of Pub. L. 96-222, set out as a note under 
section 192 of this title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-227 applicable with respect to 
contributions, acts, and expenditures made after Dec. 31, 1977, in and 
for taxable years beginning after such date, see section 4(f) of Pub. L. 
95-227, set out as an Effective Date note under section 192 of this 
title.


                    Effective Date of 1969 Amendment

    Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section 
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note under 
section 4940 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 162 of this title.
