- 7 -
section 7430 as amended by the Taxpayer Relief Act of 1997 (TRA),
Pub. L. 105-34, secs. 1285, 1453, 111 Stat. 788, 1038, 1055.
A. Requirements for a Judgment Under Section 7430
Under section 7430, a judgment for litigation costs incurred
in connection with a court proceeding may only be awarded only if
a taxpayer: (1) Is the "prevailing party"; (2) has exhausted his
or her administrative remedies within the IRS; and (3) did not
unreasonably protract the court proceeding. Sec. 7430(a) and
(b)(1), (3). Similarly, a judgment for administrative costs
incurred in connection with an administrative proceeding may be
awarded under section 7430 only if a taxpayer: (1) Is the
"prevailing party"; and (2) did not unreasonably protract the
administrative proceedings. Sec. 7430(a) and (b)(3).
A taxpayer must satisfy each of the respective requirements
in order to be entitled to an award of litigation or
administrative costs under section 7430. See Rule 232(e). Upon
satisfaction of these requirements, a taxpayer may be entitled to
reasonable costs incurred in connection with the administrative
or court proceedings. See sec. 7430(a)(1) and (2), (c)(1) and
(2).
To be a prevailing party, 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. See sec. 7430(c)(4)(A).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011