- 12 - Discussion Generally, a taxpayer who has substantially prevailed in a Tax Court proceeding may be awarded reasonable litigation costs incurred in connection with such court proceeding. Sec. 7430(a). To be entitled to an award of reasonable litigation costs, the moving party must establish all of the following: (1) That the party exhausted the administrative remedies (sec. 7430(b)(1)); (2) that the party did not protract the proceeding unreasonably (sec. 7430(b)(4)); (3) that the position of the United States in the proceeding was not substantially justified (sec. 7430(c)(4)(A)(i)); (4) that the party substantially prevailed with respect to the amount in controversy, or with respect to the most significant issue or set of issues presented (sec. 7430(c)(4)(A)(ii)); (5) that the party met the net worth requirements of 28 U.S.C. sec. 2412(d)(2)(B) (1988) (sec. 7430(c)(4)(A)(iii)); and (6) that the costs are reasonable as defined in section 7430(c)(1). The parties agree that administrative remedies have been exhausted, that petitioner wives substantially prevailed as to the innocent spouse issues, and that petitioner wives meet the net worth requirements. The parties disagree as to whether petitioner wives unreasonably protracted the proceedings, whether respondent's position was substantially justified, and whether the costs requested are reasonable.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011