PUBLIC LAW 105-206-^ULY 22, 1998 112 STAT. 727 "(1) GENERAL RULE. —I f, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B, the Secretary shall have the burden of proof with respect to such issue. "(2) LIMITATIONS.— Paragraph (1) shall apply with respect Applicability, to an issue only if— "(A) the taxpayer has complied with the requirements under this title to substantiate any item; "(B) the taxpayer has maintained all records required under this title and has cooperated with reasonable requests by the Secretary for witnesses, information, documents, meetings, and interviews; and "(C) in the case of a partnership, corporation, or trust, the taxpayer is described in section 7430(c)(4)(A)(ii). "(3) COORDINATION.— Paragraph (1) shall not apply to any issue if any other provision of this title provides for a specific burden of proof with respect to such issue. "(b) USE OF STATISTICAL INFORMATION ON UNRELATED TAX- PAYERS. —In the case of an individual taxpayer, the Secretary shall have the burden of proof in any court proceeding with respect to any item of income which was reconstructed by the Secretary solely through the use of statistical information on unrelated taxpayers. "(c) PENALTIES.— Notwithstanding any other provision of this title, the Secretary shall have the burden of production in any court proceeding with respect to the liability of any individual for any penalty, addition to tax, or additional amount imposed by this title.". (b) CONFORMING AMENDMENT. — The table of subchapters for chapter 76 is amended by adding at the end the following new item: "SUBCHAPTER E. Burden of proof.". (c) EFFECTIVE DATE. — (1) IN GENERAL.— The amendments made by this section shall apply to court proceedings arising in connection with examinations commencing after the date of the enactment of this Act. (2) TAXABLE PERIODS OR EVENTS AFTER DATE OF ENACT- MENT. —In any case in which there is no examination, such amendments shall apply to court proceedings arising in connection with taxable periods or events beginning or occurring after such date of enactment. Applicability. 26 USC 7491 note. Subtitle B—Proceedings by Taxpayers Courts. SEC. 3101. EXPANSION OF AUTHORITY TO AWARD COSTS AND CERTAIN FEES. (a) INCREASE IN ATTORNEY'S FEES.— (1) INCREASE IN HOURLY AMOUNT.— Clause (iii) of section 7430(c)(1)(B) (relating to reasonable litigation costs) is amended by striking "$110" and inserting "$125". (2) AWARD OF HIGHER ATTORNEY'S FEES BASED ON COMPLEX- ITY OF ISSUES. —Clause (iii) of section 7430(c)(1)(B) (relating to the award of costs and certain fees) is amended by inserting
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