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administrative costs. Under the circumstances, we shall consider
the amended motion only as a motion for an award of reasonable
litigation costs. The stipulated decision was vacated, and the
decision document was filed as a stipulation of settlement on
April 27, 1998.
Neither party requested an evidentiary hearing, and the
Court concludes that such a hearing is not necessary for the
proper disposition of petitioner's amended motion. Rule
232(a)(2). We therefore decide the matter before us based on the
record.
Under section 7430(a), a judgment for litigation costs
incurred in connection with a court proceeding may be awarded
only if a taxpayer is the "prevailing party", has exhausted his
or her administrative remedies within the Service, and did not
unreasonably protract the court proceeding. Sec. 7430(a) and
(b)(1), (3). The taxpayer also must prove that the court costs
are reasonable. Sec. 7430(c)(1). The taxpayer must
substantially prevail with respect to either the amount in
controversy or the most significant issue or set of issues
presented and satisfy the applicable net worth requirement. Sec.
7430(c)(4)(A). A taxpayer must satisfy each of the respective
requirements in order to be entitled to an award of litigation
costs under section 7430. Rule 232(e); Minahan v. Commissioner,
88 T.C. 492, 497 (1987).
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