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directly to petitioner's attorneys. Petitioner did not include
the $750,000 as income on her 1992 return.
The payment petitioner received from the clerk was from
proceeds paid into the Superior Court by DeKalb County, Georgia
(the county). The county condemned the marital residence of
petitioner and Human for use by the Metropolitan Atlanta Rapid
Transit Authority.
Discussion
Section 7430 provides for the award of reasonable
administrative and litigation costs to a taxpayer in an
administrative or court proceeding brought against the United
States involving the determination of any tax, interest, or
penalty pursuant to the Internal Revenue Code. An award of
administrative or litigation costs may be made where the
taxpayer: (1) Is the prevailing party, (2) exhausted available
administrative remedies,3 and (3) did not unreasonably protract
the administrative or judicial proceeding. Sec. 7430(a) and
(b)(1), (3).
Issue 1. Prevailing Party
To be a "prevailing party", a taxpayer must (1)
substantially prevail with respect to either the amount in
controversy or the most significant issue or set of issues
3 This requirement does not apply to an award for
reasonable administrative costs. Sec. 7430(b)(1).
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Last modified: May 25, 2011