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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.
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Last modified: May 25, 2011