James Tinnell - Page 6




                                        - 6 -                                         
               In his response to petitioner’s motion, respondent agrees              
          that (1) petitioner has substantially prevailed with respect to             
          the amount in controversy under section 7430(c)(4)(A)(i), (2)               
          petitioner meets the net worth requirements under section                   
          7430(c)(4)(A)(ii), and (3) petitioner exhausted administrative              
          remedies available to him as required by section 7430(b)(1).                
          Respondent contends, however, that petitioner is not a prevailing           
          party within the meaning of section 7430(c)(4)(A) because the               
          position taken by respondent in this case was substantially                 
          justified within the meaning of section 7430(c)(4)(B).                      
          Alternatively, respondent contends that petitioner is not                   
          entitled to the litigation costs claimed because petitioner                 
          unreasonably protracted this litigation, the litigation costs               
          claimed are excessive, and the litigation costs claimed are not             
          adequately documented.                                                      
                                     Discussion                                       
               In general, section 74304 provides for an award of                     
          reasonable litigation costs to a taxpayer who:  (1) Is the                  
          prevailing party in a court proceeding brought against the United           
          States involving the determination of any tax, interest, or                 


               4Sec. 7430, as most recently amended by Congress in the IRS            
          Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3101,           
          112 Stat. 727, applies to that portion of the claimed costs                 
          incurred after Jan. 18, 1999.  Sec. 7430, as amended by the                 
          Taxpayer Relief Act of 1997, Pub. L. 105-34, secs. 1285, 1453,              
          111 Stat. 1038, 1055, applies to that portion of the claimed                
          costs incurred on or before Jan. 18, 1999.                                  





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011