[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 163 Introduced in House (IH)]




105th CONGRESS
  1st Session
                                H. R. 163

To amend the Internal Revenue Code of 1986 to place the burden of proof 
 on the Secretary to prove that the cash method of accounting does not 
                        clearly reflect income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

 Mr. English of Pennsylvania introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to place the burden of proof 
 on the Secretary to prove that the cash method of accounting does not 
                        clearly reflect income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. BURDEN OF PROOF ON SECRETARY TO PROVE CASH METHOD OF 
              ACCOUNTING DOES NOT CLEARLY REFLECT INCOME.

    (a) In General.--Subsection (b) of section 446 of the Internal 
Revenue Code of 1986 (relating to general rule for methods of 
accounting) is amended by adding at the end the following new sentence: 
``In the case of a taxpayer not otherwise precluded under section 447 
or 448 from using the cash receipts and disbursements method of 
accounting, in any proceeding involving the issue of whether such 
method clearly reflects income, the burden of proof in respect of such 
issue shall be upon the Secretary.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to proceedings commenced after the date of the enactment of this 
Act.
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