Haas & Associates Accountancy Corporation - Page 13




                                        - 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 under           






Page:  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