Gary C. and Maru E. Johansen - Page 3

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               This matter is before the Court on petitioners’ motion for             
          administrative and litigation costs under section 7430 and Rule             
          231 (motion).                                                               
               Although petitioners’ motion sought an award for both                  
          litigation and administrative costs, petitioners do not appear to           
          have any administrative costs.  The first time entry on the                 
          billing statement submitted by petitioners’ certified public                
          accountant (C.P.A.) was “Prepare Tax Court petition”.  This time            
          entry and the nine time entries that followed were not dated.               
          Based on the descriptions, the Court concludes that these entries           
          represent costs that were incurred in connection with either the            
          preparation or the filing of the petition with the Court.  Hence,           
          they are litigation costs.  See sec. 7430(c)(1); sec. 301.7430-             
          4(c)(3), Proced. & Admin. Regs.  The remaining time entries are             
          also litigation costs, because they were dated after the                    
          petition’s filing date.  Sec. 301.7430-4(c)(3), Proced. & Admin.            
          Regs.  Accordingly, the Court will treat petitioners’ motion as a           
          motion for the recovery only of litigation costs.                           
               Respondent agrees that petitioners:  (1) Have not                      
          unreasonably protracted the court proceedings; (2) have claimed a           
          reasonable amount of costs; (3) have substantially prevailed with           
          respect to the amount in controversy and with respect to the most           
          significant issue presented in the court proceedings; and (4)               
          have met the net worth requirements as provided by law.                     






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