- 10 -
conference prior to filing a petition, or (2) requested an
Appeals Office conference and the request was denied. Cole v.
Commissioner, T.C. Memo. 1996-375. This requirement aims "to
preserve the role that the administrative appeals process plays
in the resolution of tax disputes by requiring taxpayers to
pursue such remedies prior to litigation." H. Rept. 97-404, at
13 (1981); see also Technical Explanation of Committee Amendment,
127 Cong. Rec. sec. 15594 (daily ed. Dec. 16, 1981).8
In the instant case, the following facts are not in dispute:
On May 15, 1992, respondent issued to petitioners (and their
representative, Mr. Silver) a 30-day letter, which afforded
petitioners an opportunity for an Appeals conference with
respondent's Office of the Regional Director of Appeals.
However, neither petitioners nor their representative requested
7(...continued)
discloses to the Appeals office all relevant information
regarding the party's tax matter to the extent such information
and its relevance were known or should have been known to the
party or qualified representative at the time of such
conference." Sec. 301.7430-1(b)(2), Proced. & Admin. Regs.
8The House report also stated:
A taxpayer who actively participates in and discloses
all relevant information during the administrative
stages of the case will be considered to have exhausted
the available administrative remedies. Failure to so
participate and disclose information may be sufficient
grounds for determining that the taxpayer has not
exhausted administrative remedies and, therefore, is
ineligible for an award of litigation costs. [H. Rept.
97-404, at 13 (1981).]
See also Minahan v. Commissioner, 88 T.C. 492, 508 (1987).
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