Wayne C. Mason - Page 5

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            1998, the date on which respondent first mailed petitioner a                                
            proposed settlement document.3  All of the costs associated with                            
            attorney Giffin's services were incurred in 1997.  Apparently,                              
            attorney Curtin provided a portion of his services in 1997 and                              
            another portion in 1998.                                                                    
            Discussion                                                                                  
                  We apply section 7430 as amended by the Taxpayer Bill of                              
            Rights 2 (TBOR 2), Pub. L. 104-168, secs. 701-704, 110 Stat.                                
            1452, 1463-1464 (1996).  The amendments made by TBOR 2 apply in                             
            the case of proceedings commenced after July 30, 1996.  TBOR 2                              
            secs. 701(d), 702(b), 703(b), and 704(b), 110 Stat. 1463-1464.                              
            Inasmuch as the petition herein was filed on February 20, 1997,                             
            the amendments made by TBOR 2 apply in the present case.4                                   
                  A. Requirements for a Judgment Under Section 7430                                     

                  3  In this regard, we ignore the proposed settlement                                  
            document mailed to petitioner's former attorney because attorney                            
            Giffin had already been withdrawn and there is no indication that                           
            the proposed settlement document mailed to attorney Giffin was                              
            received by petitioner.                                                                     
                  4  Congress has amended sec. 7430 twice since Taxpayer Bill                           
            of Rights 2, Pub. L. 104-168, 110 Stat. 1452 (1996).  First,                                
            Congress amended sec. 7430 in the Taxpayer Relief Act of 1997                               
            (TRA), Pub. L. 105-34, secs. 1285, 1453, 111 Stat. 788, 1038-                               
            1039, 1055.  Second, Congress amended sec. 7430 in the IRS                                  
            Restructuring and Reform Act of 1998 (RRA), Pub. L. 105-206, sec.                           
            3101, 112 Stat. 685, 727-730.  However, the amendments made by                              
            TRA do not apply in the case of proceedings commenced before Aug.                           
            5, 1997, and the amendments made by RRA apply only to costs                                 
            incurred more than 180 days after July 22, 1998.  Inasmuch as the                           
            petition herein was filed on Feb. 10, 1997, and all of the                                  
            claimed costs were incurred no later than May 18, 1998 (the trial                           
            date), the amendments made by TRA and RRA do not apply in the                               
            present case.                                                                               




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