- 6 - The statute clearly provides otherwise. Section 6404(i) grants Tax Court jurisdiction over abatement review actions brought by taxpayers meeting “the requirements referred to in section 7430(c)(4)(A)(ii)”. One such requirement referred to in section 7430(c)(4)(A)(ii) is section 2412(d)(2)(B) of title 28 of the United States Code. Section 7430(c)(4)(D) provides “special rules” for applying the requirements of section 2412(d)(2)(B) of title 28 “for purposes of” section 7430(c)(4)(A)(ii). (Emphasis added.) Nothing in the language of section 7430(c)(4)(D) limits its application to awards of costs and fees. Indeed, without incorporation of section 7430(c)(4)(D) by section 6404(i), there would be no express statutory basis for Tax Court jurisdiction over an action for review of abatement brought by an estate.2a 2a Since 28 U.S.C. sec. 2412(d)(2)(B) (1994) (as in effect on Oct. 22, 1986) by its terms applies only to “an individual * * * or * * * any owner of an unincorporated business, or any partnership, corporation, association, unit of local government, or organization, * * * or a cooperative association”, that section standing alone does not provide a clear basis to discern whether or how an estate might meet its requirements. Cf. Estate of Hubberd v. Commissioner, 99 T.C. 335 (1992). However, prior to enactment of sec. 7430(c)(4)(D), this Court and others held that 28 U.S.C. sec. 2412(d)(2)(B) as used in sec. 7430(c)(4)(A)(ii) should be construed to entitle estates to seek an award of litigation costs. See, e.g., Estate of Woll v. United States, 44 F.3d 464, 467-468 (7th Cir. 1994); Estate of Hubberd v. Commissioner, supra. Recognizing the statutory ambiguities addressed in those and similar cases, Congress added sec. 7430(c)(4)(D) with the specific intent of clarifying the net worth limitations applicable to estates, trusts, and individuals filing jointly, thereby rendering those cases moot. See H. Rept. 105-148 at 638-639 (1997) (“Although the net worth requirements are explicit for individuals, corporations, and partnerships, itPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011