If the taxpayer has credible evidence, the IRS bears the burden of proof in a tax dispute.

Question

Quizplus · Accepted Answer

This statement is true. When a taxpayer presents credible evidence in a tax dispute, the burden of proof shifts to the IRS to disprove the taxpayer's evidence. This is known as the "burden of production" or "burden of going forward with the evidence." However, the ultimate burden of persuasion always remains with the taxpayer.

If the Taxpayer Has Credible Evidence, the IRS Bears the Burden