26 USC § 7454 - Burden of proof in fraud, foundation manager, and transferee cases | Title 26 - Internal Revenue Code | U.S. Code

USCPrelim is a preliminary release and may be subject to further revision before it is released again as a final version.

Current through Pub. L. 112-143, except 112-141. (See Public Laws for the current Congress.)

(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.

(c) Cross reference

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

[1] So in original.

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(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.

(c) Cross reference

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

[1] So in original.

Source

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

Amendments

1996—Subsec. (b). Pub. L. 104–188substituted “section 4955 (f)(2)” for “section 4955 (e)(2)”.

Pub. L. 104–168inserted “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, § 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, § 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. 96–222substituted “section 501 (c)(21)” for “section 502 (c)(21)”.

1978—Subsec. (b). Pub. L. 95–227inserted provision relating to trustees of a trust described under section 502 (c)(21) of this title.

1976—Subsecs. (a), (b). Pub. L. 94–455struck out “or his delegate” after “Secretary”.

1969—Pub. L. 91–172inserted “, foundation manager” in section catchline.

Subsecs (b), (c). Pub. L. 91–172added subsec. (b) and redesignated former subsec. (b) as (c).

Effective Date of 1996 Amendment

Amendment by Pub. L. 104–168applicable 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) ofPub. 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) ofPub. L. 100–203applicable to taxable years beginning after Dec. 22, 1987, see section 10712(d) ofPub. L. 100–203, set out as an Effective Date note under section 4955 of this title.

Amendment by section 10714(b) ofPub. L. 100–203applicable to taxable years beginning after Dec. 22, 1987, see section 10714(e) ofPub. 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. 96–222effective as if included in the provisions of the Black Lung Benefits Revenue Act of 1977, Pub. L. 95–227, see section 108(b)(4) ofPub. L. 96–222, set out as a note under section 192 of this title.

Effective Date of 1978 Amendment

Amendment by Pub. L. 95–227applicable 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) ofPub. 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. 91–172effective Jan. 1, 1970, see section 101(k)(1) ofPub. L. 91–172, set out as an Effective Date note under section 4940 of this title.

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26 USC	Description of Change	Session Year	Public Law	Statutes at Large

26 USC § 7454 - Burden of proof in fraud, foundation manager, and transferee cases

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