- 11 - Of the total $44,559 in litigation fees and costs for which petitioners seek recovery, petitioners calculate that $39,648 was incurred after petitioners made their qualified offer. OPINION Under the general provisions of section 7430, based on the contention that respondent’s position was not substantially justified, petitioners seek recovery of the $44,559 in litigation costs they incurred after respondent’s July 17, 1998, notices of deficiency were mailed to them. Alternatively, based on their May 5, 1999, qualified offer, petitioners seek recovery of the $39,648 in litigation costs incurred after petitioners made their qualified offer. We have not previously considered the qualified offer rule of section 7430(c)(4)(E) and (g).3 3 Sec. 7430(c)(4)(E) and (g), provides in part as follows: SEC. 7430. AWARDING OF COSTS AND CERTAIN FEES. (c) Definitions.--For purposes of this section-- * * * * * * * (4) Prevailing party. * * * * * * * (E) Special rules where judgment less than taxpayer’s offer. (i) In general.--A party to a court proceeding meeting the requirements of subparagraph (A)(ii) shall be treated as the prevailing party if the liability of the (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011