If you have a client that may be questioning who has the burden of proof in regard to IRS proceedings, I have written a standard letter for you to use. This letter outlines the basics in regard to transferring the burden of proof away from a taxpayer and onto the IRS. It is written in basic terms to help clients understand what their rights are in terms of who has the burden of proof.
Basic IRS Burden of Proof Client Letter
In any court proceeding, the burden of proof can be shifted to the IRS if the taxpayer is able to show evidence regarding the facts in the case pertaining to their income tax liability. Below I have outlined these issues that you need to consider before you can shift the burden of proof to the IRS.
1. You must be able to introduce factual and credible evidence that would verify your position. This evidence must be able to stand up in court and reliable enough for the court to base their decision around it. Without this type of evidence, it would be hard to move forward in shifting the burden of proof away from you.
2. You must be able to verify your evidence with well kept documentation and records. There is no way around this, if you cannot backup your claims with documented evidence it will be nearly impossible to shift the burden of proof to the IRS.
3. You must be willing to fully cooperate with the IRS and their requests for information, documents, interviews and meetings. You will need to show to the IRS that you want to work to prove your point in the case and shift the burden of proof onto them.
4. In some situations you may need to verify your net worth. This only applies to trusts, corporations and partnerships that have a net worth in excess of $7 million. If you are an individual taxpayer, this provision does not apply to you and you do not need to verify your net worth.
Each one of these steps listed above needs to be fulfilled in order for the burden of proof to be shifted away from the taxpayer and onto the IRS.
If you have any questions in regard to these provisions, please give me a call.
Feel Free To Rewrite This Letter
If your wish to rewrite this letter for your specific situation, feel free to do so.