Proposal to shift burden of proof.

• Position: Comments submitted Oct 14, 1997 by Tax Executives Institute to U.S. Representative Bill Archer regarding the proposed burden shift from taxpayers to the IRS

On October 14, 1997, Tax Executives Institute submitted the following comments to Representative Bill Archer, Chairman of the House Committee on Ways and Means, concerning the Chairman's support for a proposal to shift the burden of proof from the taxpayer to the Internal Revenue Service in tax disputes. The comments took the form of a letter from TEI President Paul Cherecwich, Jr.

On behalf of Tax Executives Institute, I am writing to express serious concern about your statements supporting legislation to shift the burden of proof in tax matters. While such a proposal may seem consistent with the laudable push to enact a new taxpayer bill of rights, it is in reality misguided. Tax Executives Institute is convinced that, if implemented, the proposal would lead to either a more intrusive Internal Revenue Service or a completely ineffective one. Neither one of those choices would be good for the country. Consequently, TEI strongly urges you to reconsider your support for the proposal.

Background

Tax Executives Institute is the principal association of corporate tax executives in North America. TEI is a nonpartisan, not-for-profit membership association that represents approximately 5,000 in-house tax professionals employed by 2,800 of the leading companies in the United States and Canada. TEI is dedicated to the development and effective implementation of sound tax policy, to promoting the uniform and equitable enforcement of the tax laws, and to reducing the cost and burden of administration and compliance to the benefit of taxpayers and government alike.

Tax Executives Institute is supportive of the Ways and Means Committee's recent efforts to improve the tax system and to enhance taxpayer rights. I was pleased and honored to have been asked by the Committee to testify recently on proposals to restructure the Internal Revenue Service, and continue to believe that pending legislative proposals hold much promise for improving the management and oversight of the IRS. TEI pledges its ongoing support for good-faith efforts to improve the tax system and increase taxpayer protections. Regrettably, the proposal to shift the burden of proof in tax cases is not one of those proposals.

Proposal to Shift the Burden of Proof

Under current law, a taxpayer is generally required to maintain records substantiating the calculation of his or her income tax liability. Proponents of burden-shifting legislation have argued that the current rule is unfair because...