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This Court entered five separate Decisions pursuant to the
stipulated settlement agreements by the parties. Thereafter,
this Court granted petitioners' motions to vacate or revise the
aforementioned Decisions, and petitioners' motions for award of
reasonable litigation costs were filed. Respondent's notices of
objection to petitioners' motions for costs and a memorandum
were filed. Petitioners' notices of filing additional
evidentiary materials and briefs in opposition were filed. In
their briefs in opposition, petitioners conceded that the
litigation costs in these cases are not severable and cannot be
reasonably allocated between the two issues raised by
petitioners. Accordingly, we shall not so allocate.
Section 7430(a) authorizes an award of reasonable
litigation costs to the "prevailing party". To qualify as a
prevailing party petitioners must establish: (1) That the
position of the United States in the proceeding was not
substantially justified; (2) that they substantially prevailed
with respect to the amount in controversy, or with respect to
the most significant issue or set of issues presented; and (3)
that they satisfied the net worth requirements of 28 U.S.C.
section 2412(d)(2)(B) (1991) on the date each petition was
filed. Sec. 7430(c)(4)(A). Petitioners must also establish
that they have exhausted the administrative remedies available
to them within the Internal Revenue Service, that they did not
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Last modified: May 25, 2011