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Thereafter, on March 1, 1999, counsel for respondent
contacted petitioners to inquire whether they would agree to join
in a motion requesting that the record be reopened and, pursuant
to Rule 91(e), that paragraph 15 of the stipulation of facts be
modified. On March 2, 1999, petitioners informed respondent’s
counsel that they would not agree to reopen the record. Two days
later, on March 4, 1999, respondent conceded the cases and
prepared stipulated decisions reflecting no deficiencies in
petitioners' income taxes for the year in issue. Decisions to
that effect were entered by this Court on March 31, 1999.
Petitioners thereafter filed their motion for administrative
and litigation costs. In accordance with section 7430 and Rule
232, the decisions entered on March 31, 1999, were vacated and
set aside.
Discussion
We apply section 7430 as most recently amended by Congress
in the IRS Restructuring and Reform Act of 1998 (RRA 1998), Pub.
L. 105-206, sec. 3101, 112 Stat. 685, 727. However, certain of
the amendments made by RRA 1998 to section 7430 (regarding the
reasonableness of costs, the type of recoverable costs, and other
provisions not at issue herein) apply only to costs incurred
after January 18, 1999. To the extent of the portion of the
claimed costs incurred on or before January 18, 1999, we apply
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