- 7 - PFI concedes that Pacific Harbor, and not Partnership or PFI, paid all of the litigation costs at issue. However, it asserts that those litigation costs were "incurred for PFI in its capacity as tax [matters] partner in bringing its Petition" (emphasis added) in this case and that therefore either PFI or Partnership satisfies section 7430(a)(2). We disagree. In addressing the meaning of the word "incurred" in the context of section 7430, the Court has observed that the common meaning of the word incur is "to become liable or subject to: bring down upon oneself." Frisch v. Commissioner, 87 T.C. 838, 846 (1986). Fees and expenses are incurred when there is a legal obligation to pay them. See Marre v. United States, 38 F.3d 823, 828-829 (5th Cir. 1994); see also United States v. 122.00 Acres of Land, 856 F.2d 56 (8th Cir. 1988) (applying sec. 304(a)(2) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. sec. 4654(a), Pub. L. 91-646, 84 Stat. 1984, 1906 (1994); attorney's fees were not actually "in- curred" because the party claiming them had no legal obligation to pay them); SEC v. Comserv Corp., 908 F.2d 1407, 1414-1415 (8th Cir. 1990) (construing to a similar effect the Equal Access to Justice Act, codified at 5 U.S.C. sec. 504 and 28 U.S.C. sec. 2412 (1994)). On the record before us, we find that PFI has failed to establish that either Partnership or PFI was legally obligated toPage: Previous 1 2 3 4 5 6 7 8 Next
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