- 2 - meets the net worth test. Respondent does not dispute petitioner’s allegations and agrees that petitioner is entitled to costs and fees. The dispute between the parties concerns the reasonableness of petitioner’s claim for costs and fees. Background During 1993, respondent examined the Federal tax returns of disability retirees (including petitioner) of the City of Oakland, California, and, as of 1995, petitioner’s counsel represented more than 300 similarly situated taxpayers. During 1995, a test or lead case approach was agreed to, and a group of taxpayers agreed with respondent to be bound by the outcome of that case. The policy was not uniform, however, and petitioner and other taxpayers were not afforded agreements to be bound to a test case. During January 1996, a case with the same issue, Picard v. Commissioner, T.C. Memo. 1997-320, was submitted to the Court, resulting in a 1997 decision adverse to the taxpayer. On December 10, 1998, respondent determined a deficiency for petitioner’s 1996 tax year attributable to the disability income. On January 26, 1999, the Court of Appeals for the Ninth Circuit reversed this Court’s holding in Picard v. Commissioner, 165 F.3d 744 (9th Cir. 1999), revg. T.C. Memo. 1997-320. On February 5, 1999, before incurring the expense of filing a petition in response to the December 10, 1998, deficiency notice, petitioner advised that he would agree to an extension of the period ofPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011