- 13 - acknowledges that petitioners substantially prevailed both with respect to the amounts in controversy and with respect to the most significant issues, sec. 7430(c)(4)(A)(i), and respondent acknowledges that Haas and his wife’s 1993 joint Federal income tax liability is less than what it would have been under petitioners’ qualified offer. Further, respondent acknowledges that each petitioner meets the net-worth and number-of-employee limitations of the Equal Access to Justice Act (EAJA), 28 U.S.C. sec. 2412(d)(1) and (2)(B) (1994). Sec. 7430(c)(4)(A)(ii). Respondent contends, however, that because petitioners did not request an Appeals Office conference petitioners did not exhaust their available administrative remedies and that petitioners protracted the proceedings herein. Respondent also contends that the litigation costs claimed by petitioners are unreasonable and that Haas and his wife did not incur any litigation costs (i.e., that essentially all litigation costs for which recovery is sought were billed to Haas & Associates, not to Haas and his wife). Petitioners respond that during respondent’s audit examination they did not provide respondent’s representatives certain requested transaction documents because the documents did not exist and that they did not protest respondent’s audit adjustments and did not seek a conference with respondent’s Appeals Office because there was insufficient time to do so underPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011