Internal Revenue Code · 26 U.S.C.
§ 7454. Burden of proof in fraud, foundation manager, and transferee cases
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 7454
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- December 30, 1969 by Pub. L. 91–172
- Last amended
- March 23, 2018 by Pub. L. 115–141
- Amendments
- 7 dated changes in the source credit
- Length
- 3 subsections · 377 words · about 2 min to read
- Cross-references
- cites 11; cited by 1 Code section and 6 other regulations
- Regulations
- 2 issued under this section
In any proceeding involving the issue whether the petitioner has been guilty of fraud with intent to evade tax, the burden of proof in respect of such issue shall be upon the Secretary.
In any proceeding involving the issue whether a foundation manager (as defined in section 4946(b)) has “knowingly” participated in an act of self-dealing (within the meaning of section 4941), participated in an investment which jeopardizes the carrying out of exempt purposes (within the meaning of section 4944), or agreed to the making of a taxable expenditure (within the meaning of section 4945), or whether the trustee of a trust described in section 501(c)(21) has “knowingly” participated in an act of self-dealing (within the meaning of section 4951) or agreed to the making of a taxable expenditure (within the meaning of section 4952), or whether an organization manager (as defined in section 4955(f)(2)) has “knowingly” agreed to the making of a political expenditure (within the meaning of section 4955), or whether an organization manager (as defined in section 4912(d)(2)) has “knowingly” agreed to the making of disqualifying lobbying expenditures within the meaning of section 4912(b), or whether an organization manager (as defined in section 4958(f)(2)) has “knowingly” participated in an excess benefit transaction (as defined in section 4958(c)), the burden of proof in respect of such issue shall be upon the Secretary.
For provisions relating to burden of proof as to transferee liability, see section 6902(a).
(Aug. 16, 1954, ch. 736, 68A Stat. 884; Pub. L. 91–172, title I, § 101(j)(57), Dec. 30, 1969, 83 Stat. 532; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–227, § 4(d)(7), Feb. 10, 1978, 92 Stat. 23; Pub. L. 96–222, title I, § 108(b)(3)(B), Apr. 1, 1980, 94 Stat. 226; Pub. L. 100–203, title X, §§ 10712(c)(6), 10714(b), Dec. 22, 1987, 101 Stat. 1330–467, 1330–471; Pub. L. 104–168, title XIII, § 1311(c)(5), July 30, 1996, 110 Stat. 1478; Pub. L. 104–188, title I, § 1704(t)(43), Aug. 20, 1996, 110 Stat. 1889; Pub. L. 115–141, div. U, title IV, § 401(a)(329), Mar. 23, 2018, 132 Stat. 1200.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 7454
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 11 other sections
- § 4946(b) Definitions and special rules
- § 4941 Taxes on self-dealing
- § 4944 Taxes on investments which jeopardize charitable purpose
- § 4945 Taxes on taxable expenditures
- § 501(c)(21) Exemption from tax on corporations, certain trusts, etc.
- § 4951 Taxes on self-dealing
- § 4952 Taxes on taxable expenditures
- § 4955(f)(2) Taxes on political expenditures of section 501(c)(3) organizations
- § 4912(d)(2) Tax on disqualifying lobbying expenditures of certain organizations
- § 4958(f)(2) Taxes on excess benefit transactions
- § 6902(a) Provisions of special application to transferees
Cited by 1 Code section
Cited in 6 regulations not issued under it
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 115–141Parts changed in 2018: (b)
- Amended by Pub. L. 104–188Parts changed in 1996: (b)
- Amended by Pub. L. 104–168
- Amended by Pub. L. 100–203Parts changed in 1987: (b)
- Amended by Pub. L. 96–222Parts changed in 1980: (b)
- Amended by Pub. L. 95–227Parts changed in 1978: (b)
- Amended by Pub. L. 94–455Parts changed in 1976: (a)
- Enacted by Pub. L. 91–172
Where it sits in the Code
- Subtitle F Procedure and Administration
- Chapter 76 JUDICIAL PROCEEDINGS
- Subchapter C The Tax Court
- Part II PROCEDURE
Nearby sections
- § 7451 Petitions
- § 7452 Representation of parties
- § 7453 Rules of practice, procedure, and evidence
- § 7454 Burden of proof in fraud, foundation manager, and transferee cases
- § 7455 Service of process
- § 7456 Administration of oaths and procurement of testimony
- § 7457 Witness fees
- § 7458 Hearings
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2018—Subsec. (b). Pub. L. 115–141 substituted “4955),” for “4955),,”.
1996—Subsec. (b). Pub. L. 104–188 substituted “section 4955(f)(2)” for “section 4955(e)(2)”.
Pub. L. 104–168 inserted “or whether an organization manager (as defined in section 4958(f)(2)) has ‘knowingly’ participated in an excess benefit transaction (as defined in section 4958(c)),” after “section 4912(b),”.
1987—Subsec. (b). Pub. L. 100–203, § 10714(b), substituted “, or whether an organization manager (as defined in section 4912(d)(2)) has ‘knowingly’ agreed to the making of disqualifying lobbying expenditures within the meaning of section 4912(b), the burden of proof” for “the burden of proof”.
Pub. L. 100–203, § 10712(c)(6), substituted “or whether an organization manager (as defined in section 4955(e)(2)) has ‘knowingly’ agreed to the making of a political expenditure (within the meaning of section 4955), the burden of proof” for “the burden of proof”.
1980—Subsec. (b). Pub. L. 96–222 substituted “section 501(c)(21)” for “section 502(c)(21)”.
1978—Subsec. (b). Pub. L. 95–227 inserted provision relating to trustees of a trust described under section 502(c)(21) of this title.
1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
1969—Pub. L. 91–172 inserted “, foundation manager” in section catchline.
Subsecs (b), (c). Pub. L. 91–172 added subsec. (b) and redesignated former subsec. (b) as (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–168 applicable to excess benefit transactions occurring on or after Sept. 14, 1995, and not applicable to any benefit arising from a transaction pursuant to any written contract which was binding on Sept. 13, 1995, and at all times thereafter before such transaction occurred, see section 1311(d)(1), (2) of Pub. L. 104–168, set out as a note under section 4955 of this title.
Effective Date of 1987 Amendment
Amendment by section 10712(c)(6) of Pub. L. 100–203 applicable to taxable years beginning after Dec. 22, 1987, see section 10712(d) of Pub. L. 100–203, set out as an Effective Date note under section 4955 of this title.
Amendment by section 10714(b) of Pub. L. 100–203 applicable to taxable years beginning after Dec. 22, 1987, see section 10714(e) of Pub. L. 100–203, set out as an Effective Date note under section 4912 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96–222 effective as if included in the provisions of the Black Lung Benefits Revenue Act of 1977, Pub. L. 95–227, see section 108(b)(4) of Pub. L. 96–222, set out as a note under section 192 of this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–227 applicable with respect to contributions, acts, and expenditures made after Dec. 31, 1977, in and for taxable years beginning after such date, see section 4(f) of Pub. L. 95–227, set out as an Effective Date note under section 192 of this title.
Effective Date of 1969 Amendment
Amendment by Pub. L. 91–172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91–172, set out as an Effective Date note under section 4940 of this title.