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Discussion
The parties were unable to resolve the issue of whether
petitioners have paid or incurred reasonable litigation costs
under section 7430. As a result, respondent filed a motion for
summary judgment on the above issue. Petitioners filed an
objection to respondent's motion.
Summary judgment is intended to expedite litigation and
avoid unnecessary and expensive trials. See Florida Peach Corp.
v. Commissioner, 90 T.C. 678, 681 (1988). We believe that
summary judgment is an appropriate vehicle in the particular
circumstances of this case to resolve a limited issue in the
pending motion for litigation costs since it may assist in
forgoing a needless, expensive, and time-consuming evidentiary
hearing anticipated by the parties.
Section 7430(a) provides that, in the case of any court
proceedings brought by or against the United States in connection
with the determination, collection, or refund of any tax,
interest, or penalty, the prevailing party may be awarded a
judgment for reasonable litigation costs incurred. Reasonable
litigation costs include reasonable fees "paid or incurred" for
the services of attorneys in connection with the court
proceeding. Sec. 7430(c)(1)(B)(iii). In the case presently
before us, petitioners contend they have "paid or incurred"
litigation costs within the meaning of section 7430(c)(1)(B)(iii)
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