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costs from December 1996 to December 1999. The Court issued an
order granting petitioner's motion to vacate the decision, and we
now consider petitioner's motion for administrative and
litigation costs.
Discussion
Section 7430(a) provides that the prevailing party may be
awarded: (1) Reasonable administrative costs incurred in
connection with an administrative proceeding within the Internal
Revenue Service and (2) reasonable litigation costs incurred in
connection with a court proceeding. For this Court to award
reasonable administrative and litigation costs under section
7430, several conjunctive requirements must be met. The record
must show that: (1) The moving party exhausted any
administrative remedies available to him or her within the
Internal Revenue Service. See sec. 7430(b)(1). Respondent
concedes that petitioner has met this requirement. (2) The
moving party did not unreasonably protract the administrative
proceeding or the proceeding in this Court. See sec. 7430(b)(3).
Respondent concedes that petitioner has met this requirement.
(3) The moving party is the prevailing party. See sec. 7430(a).
As discussed below, we find that petitioner is not the prevailing
party.
To be a "prevailing party", a taxpayer must establish that
the taxpayer substantially prevailed with respect to the amount
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