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judgment for litigation costs), sec. 7430(b)(1), that the
taxpayer has not unreasonably protracted the administrative or
judicial proceedings, sec. 7430(b)(4), redesignated as (b)(3) by
the 1996 Act, and that the costs claimed are reasonable in
amount, sec. 7430(c)(1) and (2). These requirements are in the
conjunctive and each must be met in order for the Court to
determine that administrative or litigation costs should be
awarded pursuant to section 7430. Minahan v. Commissioner, 88
T.C. 492 (1987); Renner v. Commissioner, T.C. Memo. 1994-372.
Petitioners contend that they have substantially prevailed
with respect to the amounts in controversy and on the most
significant issue in this case. They further contend that they
have met the net worth requirements of 28 U.S.C., sec.
2412(d)(2)(B), that they have exhausted the administrative
proceedings available to them within the Internal Revenue
Service, and that they have not unreasonably protracted the
administrative or court proceedings. They also argue that the
costs claimed are reasonable.
Respondent agrees that petitioners have substantially
prevailed, that they meet the net worth requirements of 28
U.S.C., sec. 2412(d)(2)(B), and that they have exhausted the
administrative remedies available to them with the Internal
Revenue Service. Respondent does not agree that his position was
not substantially justified, he does not agree that petitioners
did not unreasonably protract the litigation, and he does not
agree that the costs claimed are reasonable.
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