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Discussion
We may grant petitioners’ motion if they meet all of the
statutory requirements for an award of litigation costs. See
sec. 7430(b) and (c); see also Rule 232(e); Dixson Intl. Serv.
Corp. v. Commissioner, 94 T.C. 708, 714, 715 (1990); Minahan v.
Commissioner, 88 T.C. 492, 497 (1987). The parties dispute the
four requirements noted above.
We focus on the first of those requirements; namely, that a
taxpayer must exhaust administrative remedies available within
the Internal Revenue Service before petitioning this Court with
respect to the underlying year. See sec. 7430(b)(1). We
conclude that petitioners have not met this requirement.
Petitioners never requested a conference with Appeals as to
either 1994 or 1995, although such a conference was available.
Section 301.7430-1(b)(1), Proced. & Admin. Regs., provides that,
where a conference with Appeals is available, administrative
remedies are exhausted only when the taxpayer (1) participated in
a conference with Appeals before petitioning this Court, or (2)
requested such a conference (as applicable herein, by filing a
written protest with respondent) and had its request denied.
We hold that petitioners do not qualify for an award of
litigation costs under section 7430. Cf. Patel v. Commissioner,
T.C. Memo. 1998-306; Jacoby v. Commissioner, T.C. Memo. 1997-384;
Burke v. Commissioner, T.C. Memo. 1997-127. In so holding, we
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