Reese B. Belshee, Jr. and Betty J. Belshee - Page 7




                                        - 7 -                                         
               The general rule set forth in section 7430(a) is qualified             
          by the limitations contained in section 7430(b) and the                     
          definitions contained in section 7430(c).  The flush language of            
          section 7430(c)(2) provides that "reasonable administrative                 
          costs" shall only include costs incurred on or after the earlier            
          of the date that the taxpayer receives an Appeals Office notice             
          of decision or the date a notice of deficiency is issued to the             
          taxpayer.                                                                   
               The Court has narrowly construed the relief provided in                
          section 7430.  In Estate of Gillespie v. Commissioner, 103 T.C.             
          395 (1994), the Commissioner issued a 30-day letter proposing to            
          increase the taxpayer’s estate tax liability by approximately $9            
          million.  The taxpayer filed a protest with the appropriate                 
          Appeals Office, and the matter was settled in the taxpayer’s                
          favor.  After the Appeals Office rejected the taxpayer’s request            
          for an award of administrative costs, the taxpayer filed a                  
          petition for an award of administrative costs with the Court.               
          Relying on the flush language of section 7430, and noting that              
          the Commissioner had not issued either an Appeals Office notice             
          of decision or a notice of deficiency to the taxpayer, we granted           
          the Commissioner’s motion for summary judgment that the taxpayer            
          was not entitled to an award under section 7430.                            
               In Ball v. Commissioner, supra, the taxpayer filed                     
          delinquent tax returns for 1984, 1985, and 1986.  The                       






Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011