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Subject:  Re: The Cost Basis Crisis Date:  7/3/2006  3:37 PM
Author:  Wradical Number:  87653 of 123001

(Me:)In both cases [civil and criminal], the burden of proof is on the party with the evidence to support its assertions.

(Eric:) No. In the criminal case, the burden of proof rests solely on the government. The defense need make no defense whatsoever beyond merely denying the charges.

Well, that's what I meant. In a criminal case, the government has the burdern of proof because it, and only it, has to produce the evidence to support its assertions - of the guilt of the accused.

Our tax reporting system is based on self-reporting. In a tax audit, the taxpayer, who filled out his own return, with numbers that may look funny, has the burden of proving the accuracy of those numbers - which isn't unreasonable, as he has already sworn that, "to the best of my knowledge [the return] is true, correct, and complete."

In the case I referred to earlier:
It was an amended return [that resulted in a no-change letter], with some odd circumstances, that was practically asking for it.

Eric: This is the part, the "practically asking for it," in the whole thread that bothers me.