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Petitioner, however, failed to file a return and failed to act
promptly.
In the instant case, most of the expenses petitioner seeks
to recover are associated with preparing or correcting
petitioner's 1987 and 1988 tax returns. Those costs were
incurred to provide respondent with the information necessary to
make adjustments to petitioner's accounts and to fulfill
petitioner's basic obligations as a taxpayer. Petitioner was
required to file a tax return and until he properly filed that
return, respondent was not in a position to abate the assessments
and penalties and make the proper adjustments to his account.
Indeed, until petitioner provided such information, the Service
was substantially justified in relying upon wage information
received from the school, the Minneapolis Postal Data Center, and
the Veterans Administration. See sec. 301.7430-5(h), Example
(3), Proced. & Admin. Regs. Accordingly, we hold that
petitioner's costs incurred in preparing and correcting
petitioner's tax returns are not recoverable pursuant to section
7430. The Service, moreover, took no more than a reasonable
amount of time to process petitioner's refunds after he filed his
return. Consequently, we hold that any costs associated with
procuring a refund after petitioner provided the information
5(...continued)
analyze the documents and make adjustments accordingly.
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