[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 631 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 631

 To amend the Internal Revenue Code of 1986 to place the burden on the 
  Secretary of the Treasury of proving the accuracy of determinations 
           forming a basis for certain notices of deficiency.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 6, 1997

Mr. Canady of Florida 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 on the 
  Secretary of the Treasury of proving the accuracy of determinations 
           forming a basis for certain notices of deficiency.

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

SECTION 1. BURDEN OF PROVING ACCURACY OF DETERMINATIONS WITHIN A NOTICE 
              OF DEFICIENCY.

    (a) In General.--Section 6212 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(e) Burden of Proving Accuracy of Certain Determinations.--
            ``(1) In general.--In the case of a deficiency to which 
        this subsection applies, if the taxpayer--
                    ``(A) petitions the Tax Court for a redetermination 
                of such deficiency, and
                    ``(B) has fully cooperated with the Secretary 
                (including providing, within a reasonable period, 
                access to and inspection of all witnesses, information, 
                and documents within the control of the taxpayer as 
                reasonably requested by the Secretary) with respect to 
                such deficiency,
        then the Secretary shall have the burden of proving the 
        accuracy of each determination forming a basis for such 
        deficiency.
            ``(2) Deficiencies to which subsection applies.--This 
        subsection applies to any deficiency of tax imposed by subtitle 
        A on an individual if the notice of such deficiency was 
        mailed--
                    ``(A) during any extension under section 6501(c)(4) 
                of the period of limitation under section 6501, or
                    ``(B) at any other time during such period if the 
                Tax Court determines that such notice is not supported 
                by reasonable and probative information concerning such 
                deficiency.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.
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