Clifford E. Barbour, Jr. and Dorothy D. Barbour - Page 8




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          computation of petitioner’s tax liability for 1992 taking into               
          account the adjustments outlined in the stipulation of settled               
          issues filed on October 5, 1998, and the agreed allowance for the            
          net operating loss carryback from 1993 to 1992.  The parties                 
          stipulated that petitioner’s tax liability for 1992, including a             
          deficiency in the amount of $56,002, was $152,410.  However,                 
          after application of the agreed allowance for the net operating              
          loss carryback from 1993, and petitioner’s total tax payments in             
          the amount of $96,408, it was stipulated that petitioner was                 
          entitled to a refund in the amount of $90,137 for 1992.                      
               Petitioner thereafter filed his motion for litigation costs.            
          Discussion                                                                   
               We apply section 7430 as amended by the Taxpayer Bill of                
          Rights 2 (TBOR2), Pub. L. 104-168, secs. 701-704, 110 Stat. 1452,            
          1463-1464 (1996).  The amendments made by TBOR2 apply in the case            
          of proceedings commenced after July 30, 1996.  See TBOR2 secs.               
          701(d), 702(b), 703(b), and 704(b), 110 Stat. 1463-1464.                     
          Inasmuch as the petition herein was filed on February 20, 1997,              
          the amendments made by TBOR2 apply in the present case.6                     


               6  Congress has amended sec. 7430 twice since the Taxpayer              
          Bill of Rights 2, Pub. L. 104-168, 110 Stat. 1452 (1996).  First,            
          Congress amended sec. 7430 in the Taxpayer Relief Act of 1997                
          (TRA), Pub. L. 105-34, secs. 1285, 1453, 111 Stat. 788, 1038-                
          1039, 1055.  Second, Congress amended sec. 7430 in the IRS                   
          Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206,            
          sec. 3101, 112 Stat. 685, 727-730.  However, the amendments made             
          by TRA and RRA do not apply in the case of proceedings commenced             
                                                              (continued...)           





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