2
After concessions by respondent, we must decide whether
respondent's litigating position was "not substantially
justified", as that phrase is used in section 7430(c)(4)(A)(i).
If that question is resolved in favor of petitioner, then we must
decide whether the amount of costs and attorney's fees claimed by
petitioner is reasonable.
All section references are to the Internal Revenue Code, and
all Rule references are to the Tax Court Rules of Practice and
Procedure. References to section 7430 are to that section as
amended by section 1551 of the Tax Reform Act of 1986, Pub. L.
99-514, 100 Stat. 2752 (effective for proceedings commenced after
December 31, 1985), and by section 6239 of the Technical and
Miscellaneous Revenue Act of 1988, Pub. L. 100-647, 102 Stat.
3743-3746 (effective for proceedings commenced after November 10,
1988).
Section 7430(a) authorizes the Court to award reasonable
administrative costs and reasonable litigation costs to taxpayers
who prevail against the United States in civil tax litigation.
To obtain an award of litigation costs taxpayers must prove that
they are the "prevailing party" within the meaning of section
7430(c)(4), which requires, inter alia, that they establish that
the Commissioner's position in the proceeding was not
substantially justified.
The position taken by the United States, for purposes of
administrative costs, refers to the position taken in an
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011