I

104TH CONGRESS

1ST SESSION H. R. 390

To amend the Internal Revenue Code of 1986 to provide that the burden

of proof shall be on the Secretary of the Treasury in all tax cases,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. TRAFICANT 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 provide

that the burden of proof shall be on the Secretary of

the Treasury in all tax cases, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. BURDEN OF PROOF.

4 (a) GENERAL RULE.—Chapter 77 of the Internal

5 Revenue Code of 1986 (relating to miscellaneous provi6 sions) is amended by adding at the end thereof the follow7 ing new section:
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1 ‘‘SEC. 7524. BURDEN OF PROOF.

2 ‘‘Notwithstanding any other provision of this title, in

3 the case of any court proceeding, the burden of proof with

4 respect to all issues shall be upon the Secretary.’’

5 (b) CLERICAL AMENDMENT.—The table of sections

6 for chapter 77 of such Code is amended by adding at the

7 end thereof the following new item:

‘‘Sec. 7524. Burden of proof.’’

8 (c) EFFECTIVE DATE.—The amendments made by

9 this section shall take effect on the date of the enactment

10 of this Act.

11 SEC. 2. SECRETARY OF THE TREASURY REQUIRED TO

12 SPECIFY, ON REQUEST, REGULATIONS IMPLE13 MENTING SPECIFIC TAXES.

14 (a) IN GENERAL.—Section 6001 of the Internal Rev15 enue Code of 1986 (relating to notice or regulations re16 quiring records, statements, and specific returns) is

17 amended by inserting ‘‘(a) IN GENERAL.—’’ at the begin18 ning of the first sentence and by adding at the end the

19 following new subsection:

20 ‘‘(b) REQUESTS FOR IDENTIFICATION OF IMPLE21 MENTING REGULATIONS.—The Secretary shall identify in

22 writing the specific kind or type of tax, and its specific

23 implementing regulations within 14 days, upon the written

24 request from any person made liable for the payment of

25 any tax under this title.’’
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1 (b) CONFORMING AMENDMENT.—Subsection (a) of

2 section 6001 of such Code, as redesignated by subsection

3 (a), is amended—

4 (1) by striking ‘‘any tax’’ in the first sentence

5 and inserting ‘‘any kind or type of tax’’, and

6 (2) by striking ‘‘he may require’’ in the second

7 sentence and inserting ‘‘he shall require’’.

8 SEC. 3. INCREASE IN LIMIT ON RECOVERY OF CIVIL DAM9 AGES FOR UNAUTHORIZED COLLECTION AC10 TIONS; EXCLUSION OF SUCH DAMAGES FROM

11 INCOME.

12 (a) INCREASE IN LIMIT.—Subsection (b) of section

13 7433 of the Internal Revenue Code of 1986 (relating to

14 damages) is amended by striking ‘‘$100,000’’ and insert15 ing ‘‘$1,000,000’’.

16 (b) EXCLUSION FROM INCOME.—Section 7433 of

17 such Code is amended by adding at the end the following

18 new subsection:

19 ‘‘(e) EXCLUSION OF DAMAGES FROM INCOME.—

20 Damages awarded under this section shall be excluded

21 from gross income under this title.’’

22 (c) EFFECTIVE DATE.—The amendments made by

23 this section shall apply to actions by officers or employees
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1 of the Internal Revenue Service after the date of the en2 actment of this Act.

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