Beaver Bolt, Inc. - Page 5

                                          5                                           
               (d)  Be an individual whose net worth did not exceed $2                
          million, or an owner of an unincorporated business, or any                  
          partnership, corporation, etc., the net worth of which did                  
          not exceed $7 million, when the petition was filed.  Sec.                   
          7430(c)(4)(A)(iii); 28 U.S.C. sec. 2412(d)(2)(B).  Respondent               
          concedes that petitioner meets this requirement.                            
               (e)  Establish that the amount of costs and attorney's                 
          fees claimed is reasonable.  Sec. 7430(a), (c)(1).  Recoverable             
          attorney's fees are limited to $75 per hour adjusted for cost of            
          living increases and special factors.  Sec. 7430(c)(1)(B)(iii).             
          Respondent contends that petitioner does not meet this                      
          requirement.                                                                
               A taxpayer has the burden of proving that it meets each                
          requirement before the Court may order an award of litigation               
          costs under section 7430.  Rule 232(e); Estate of Johnson v.                
          Commissioner, 985 F.2d 1315, 1318 (5th Cir. 1993); Gantner v.               
          Commissioner, 92 T.C. 192, 197 (1989), affd. 905 F.2d 241 (8th              
          Cir. 1990); Minahan v. Commissioner, 88 T.C. 492, 497 (1987).2              


               2 In 1996, legislation was enacted which shifted to the                
          Commissioner the burden of proving whether the position of the              
          United States was substantially justified, sec. 7430(c)(4)(B), as           
          amended by the Taxpayer Bill of Rights 2 (TBR2), Pub. L. 104-168,           
          sec. 701, 110 Stat. 1452, 1463 (1996), and raised the hourly rate           
          for attorney's fees to $110, sec. 7430(c)(1)(B)(iii), as amended            
          by TBR2 sec. 702(a), 110 Stat. 1464.  These changes do not apply            
          here because they are effective for proceedings commenced after             
          July 30, 1996.  TBR2 secs. 701(d), 702(b), 110 Stat. 1464; see              
          National Industrial Investors, Inc. v. Commissioner, T.C. Memo.             
          1996-423.                                                                   




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011