- 2 -- 2 - section 7430 and Rule 231.1 Respondent issued petitioners a notice of deficiency reflecting her determination that they were liable for a $14,939 deficiency in their 1993 Federal income tax and a $2,988 penalty under section 6662(a). Petitioners petitioned the Court to redetermine respondent's determination. Before trial, the parties settled all issues raised in the notice of deficiency. The parties agree that the 1993 deficiency is $7,539 and that the penalty is $466. We must decide whether petitioners are entitled to any of their claimed administrative and litigation costs. We conclude they are not. Section references are to the Internal Revenue Code. Rule references are to the Tax Court Rules of Practice and Procedure. Dollar amounts are rounded to the nearest dollar. Background We decide petitioners' motion based on the record, including respondent's objection and the parties' affidavits, declaration, and exhibits. Neither party requested a hearing, and we conclude that one is not necessary. Rule 232(a)(3). Petitioners are husband and wife, and they resided in Altadina, California, at the time of their petition. They filed a 1993 Form 1040, U.S. 1 Although petitioners' motion mentions only litigation costs, the motion refers to costs that were incurred prior to the notice of deficiency (i.e., administrative costs). We consider petitioners' motion to be a motion for both administrative and litigation costs.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011