- 18 -
warranted under the circumstances then present. Petitioners then
filed their motion for costs, as well as their motion for entry
of decision.11
II. Discussion
We apply section 7430 as amended by the Technical and
Miscellaneous Revenue Act of 1988 (TAMRA), Pub. L. 100-647, sec.
6239(a), 102 Stat. 3342, 3743-3746.12
A. Requirements for a Judgment under Section 7430
Under section 7430(a), a judgment for litigation costs
incurred in connection with a court proceeding may only be
awarded if a taxpayer: (1) Is the "prevailing party"; (2) has
exhausted his or her administrative remedies within the IRS; and
(3) did not unreasonably protract the court proceeding. Sec.
7430(a), (b)(1), (4). A taxpayer must satisfy each of these
three requirements in order to be entitled to a judgment under
section 7430. Rule 232(e).
11 Respondent contends that petitioners' motion for costs
was filed out of time and should be "dismissed" for that reason.
We reject respondent's contention and do not consider it further.
12 Technical and Miscellaneous Revenue Act of 1988 (TAMRA),
Pub. L. 100-647, sec. 6239(a), 102 Stat. 3342, 3743-3746 is
generally applicable to proceedings commenced after Nov. 10,
1988. TAMRA sec. 6239(d), 102 Stat. 3746. Congress amended sec.
7430 most recently in the Taxpayer Bill of Rights 2 (TBOR2), Pub.
L. 104-168, secs. 701-704, 110 Stat. 1452, 1463-1464 (1996).
However, the amendments made by TBOR2 apply only in the case of
proceedings commenced after July 30, 1996. TBOR2 secs. 701(d),
702(b), 703(b), and 704(b), 110 Stat. 1463-1464. Inasmuch as the
petition herein was filed on April 9, 1993, the amendments made
by TBOR2 do not apply in the present case. Maggie Management Co.
v. Commissioner, 108 T.C. (June 11, 1997).
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