- 6 - administrative and litigation costs. To be a prevailing party under section 7430(c)(4), the party seeking such award must: (1) Establish that the position of the United States in the proceeding was not substantially justified, sec. 7430(c) (4)(A)(i); (2) substantially prevail with respect to the amount in controversy, or have substantially prevailed with respect to the most significant issue or set of issues presented, sec. 7430(c)(4)(A)(ii); and (3) establish that the party had the requisite net worth at the time the proceeding was commenced, sec. 7430(c)(4)(A)(iii). Additionally, a judgment for administrative and litigation costs will not be awarded under section 7430(a) unless the Court determines: (1) That the prevailing party has exhausted the administrative remedies available within the Internal Revenue Service (Service), sec. 7430(b)(1); and (2) that the prevailing party has not unreasonably protracted the Court proceeding, sec. 7430(b)(4). See Bragg v. Commissioner, 102 T.C. 715, 717 (1994); Polyco, Inc. v. Commissioner, 91 T.C. 963, 966-967 (1988). Respondent agrees that petitioners substantially prevailed in the underlying actions, met the net worth requirement, have not unreasonably protracted the Court proceeding, and have exhausted their administrative remedies. Thus, we focus our analysis on considering whether respondent's position was substantially justified.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011