James L. Ball - Page 9

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            notices of intent to levy as notices of deficiency for purposes                             
            of section 7430(c).  Respondent concedes that it was an error not                           
            to issue a notice of deficiency for amounts in excess of                                    
            the amounts shown on petitioner's 1984 and 1985 returns.2                                   
                  The parties agree that respondent was not required to issue                           
            a notice of deficiency for 1986 because the amount of tax                                   
            assessed was equal to the amount of tax liability shown on                                  
            petitioner's 1986 return.  Secs. 6213(a), 6211(a).                                          
            2.    Discussion                                                                            
                  Section 7430(c)(2) is unambiguous:  Reasonable                                        
            administrative costs include only costs that occur after                                    
            respondent issues a notice of deficiency or Appeals issues a                                
            notice of decision.  Sec. 7430(c)(2).  Petitioner is not entitled                           
            to an award of administrative costs under section 7430(c) because                           
            neither event has occurred.  Congressional intent can be shown                              
            by comparing the Senate and conference versions of the TAMRA                                
            provision which defined "position of the United States".  To                                



                  2 Sec. 6213(a) provides in pertinent part:                                            
                  Except as otherwise provided in section 6851, 6852, or                                
                  6861 no assessment of a deficiency in respect of any                                  
                  tax * * * and no levy or proceeding in court for its                                  
                  collection shall be made, begun, or prosecuted until                                  
                  such notice has been mailed to the taxpayer, nor until                                
                  the expiration of such 90-day or 150-day period, as the                               
                  case may be, nor, if a petition has been filed with the                               
                  Tax Court, until the decision of the Tax Court has                                    
                  become final.  * * *                                                                  




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