Public Law 119-73 (01/23/2026)

26 U.S.C. § 7454

Burden of proof in fraud, foundation man­ager, and transferee cases

(a)

Fraud

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.

(b)

Foundation managers

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.

(c)

Cross reference

For provisions relating to burden of proof as to transferee liability, see section 6902(a).

Aug. 16, 1954, ch. 73668A Stat. 884Pub. L. 91–172, title I, § 101(j)(57)83 Stat. 532Pub. L. 94–455, title XIX, § 1906(b)(13)(A)90 Stat. 1834Pub. L. 95–227, § 4(d)(7)92 Stat. 23Pub. L. 96–222, title I, § 108(b)(3)(B)94 Stat. 226Pub. L. 100–203, title X101 Stat. 1330–467Pub. L. 104–168, title XIII, § 1311(c)(5)110 Stat. 1478Pub. L. 104–188, title I, § 1704(t)(43)110 Stat. 1889Pub. L. 115–141, div. U, title IV, § 401(a)(329)132 Stat. 1200(, ; , , ; , , ; , , ; , , ; , §§ 10712(c)(6), 10714(b), , , 1330–471; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 115–1412018—Subsec. (b). substituted “4955),” for “4955),,”.

Pub. L. 104–1881996—Subsec. (b). 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),”.

Pub. L. 100–203, § 10714(b)1987—Subsec. (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”.

Pub. L. 96–2221980—Subsec. (b). substituted “section 501(c)(21)” for “section 502(c)(21)”.

Pub. L. 95–227section 502(c)(21) of this title1978—Subsec. (b). inserted provision relating to trustees of a trust described under .

Pub. L. 94–4551976—Subsecs. (a), (b). struck out “or his delegate” after “Secretary”.

Pub. L. 91–1721969— inserted “, foundation manager” in section catchline.

Pub. L. 91–172Subsecs (b), (c). added subsec. (b) and redesignated former subsec. (b) as (c).

Statutory Notes and Related Subsidiaries

Effective Date of 1996 Amendment

Pub. L. 104–168Pub. L. 104–168section 4955 of this titleAmendment by applicable to excess benefit transactions occurring on or after , and not applicable to any benefit arising from a transaction pursuant to any written contract which was binding on , and at all times thereafter before such transaction occurred, see section 1311(d)(1), (2) of , set out as a note under .

Effective Date of 1987 Amendment

section 10712(c)(6) of Pub. L. 100–203section 10712(d) of Pub. L. 100–203section 4955 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .

section 10714(b) of Pub. L. 100–203section 10714(e) of Pub. L. 100–203section 4912 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .

Effective Date of 1980 Amendment

Pub. L. 96–222Pub. L. 95–227section 108(b)(4) of Pub. L. 96–222section 192 of this titleAmendment by effective as if included in the provisions of the Black Lung Benefits Revenue Act of 1977, , see , set out as a note under .

Effective Date of 1978 Amendment

Pub. L. 95–227section 4(f) of Pub. L. 95–227section 192 of this titleAmendment by applicable with respect to contributions, acts, and expenditures made after , in and for taxable years beginning after such date, see , set out as an Effective Date note under .

Effective Date of 1969 Amendment

Pub. L. 91–172section 101(k)(1) of Pub. L. 91–172section 4940 of this titleAmendment by effective , see , set out as an Effective Date note under .