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This case was later settled, and it was stipulated that the
corporation had made an overpayment in income tax of $4,377 for
taxable year ending June 30, 1992, and had a deficiency in the
amount of $199 for taxable year ending June 30, 1993. The
corporation subsequently filed a motion for an award of
reasonable litigation costs.
Discussion
Taxpayers may be awarded an amount for reasonable litigation
costs if they meet the requirements of section 7430. In order to
qualify for such an award, a party must: (1) Qualify as a
prevailing party; (2) have exhausted available administrative
remedies; (3) not have unreasonably protracted the court
proceeding; and (4) show that the costs claimed are reasonable
litigation costs incurred in connection with the court
proceeding. Sec. 7430(c)(4), (b)(1), (b)(4), (a)(2). The
taxpayers have the burden of establishing that all the foregoing
criteria have been satisfied. See Rule 232(e); Maggie Management
Co. v. Commissioner, 108 T.C. 430 (1997).
Both petitioner and respondent agree that all the
administrative remedies available within the Internal Revenue
Service have been exhausted. There is some dispute, however, as
to the other requirements of section 7430.
Prevailing Party
To be a "prevailing party", a taxpayer must establish:
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