- 2 - costs and fees pursuant to section 7430 and Rule 231.1 Petitioners do not request a hearing on this matter, and we see no reason for a hearing. See Rule 232(a)(2). Accordingly, we rule on petitioners' motion on the basis of the parties' submissions and the existing record. See Rule 232(a)(1). We incorporate by reference portions of Marten v. Commissioner, T.C. Memo. 1999-340 (Marten I), our opinion on the merits in the instant case, that are relevant to the disposition of the motion before us. After concessions,2 the issue for decision is whether petitioners are a “prevailing party” in the underlying tax case. Subsumed within this issue is the question of whether respondent's position in the underlying tax case was substantially justified. Background In 1953, David E. Lane (Mr. Lane) and Virginia M. Marten (Ms. Marten) married. After legally separating in 1979, Mr. Lane purchased a $750,000 life insurance policy on his own life and 1 Unless otherwise indicated, all section references are to the Internal Revenue Code as amended, and all Rule references are to the Tax Court Rules of Practice and Procedure. 2 In respondent's objection to petitioners' motion for costs and fees, respondent concedes that: (1) Petitioners substantially prevailed with respect to the amount in controversy and to the most significant issue presented in the Court proceeding, (2) petitioners have not unreasonably protracted the litigation, and (3) petitioners exhausted their administrative remedies available within the Internal Revenue Service.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011