Dartmouth Clubs, Inc. - Page 7




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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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