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4. Have net worth for individuals that does not exceed $2
million. See sec. 7430(c)(2)(A)(iii); 28 U.S.C. sec.
2412(d)(1)(B) (1986). Respondent concedes that Martin meets this
requirement.
5. Show that the taxpayer did not unreasonably protract
the proceedings. See sec. 7430(b)(4). Respondent concedes that
Martin meets this requirement.
6. Establish that the amount of costs and attorney's fees
claimed by the taxpayer is reasonable. See sec. 7430(a), (c)(1).
Respondent agrees that the amounts Martin claimed are reasonable
except for certain costs respondent contends are unsubstantiated.
A taxpayer has the burden of proving that he or she meets
each of these requirements before the Court may award litigation
costs under section 7430. See Rule 232(e); Estate of Johnson v.
Commissioner, 985 F.2d 1315, 1318 (5th Cir. 1993); Gantner v.
Commissioner, 92 T.C. 192, 197 (1989), affd. 905 F.2d 241 (8th
Cir. 1990).
Thus, to prevail, Martin must show that respondent's
position that the petition was valid as to Martin was not
substantially justified. If Martin meets this requirement, he
must also show that the amount of costs and attorney’s fees that
he claimed is reasonable.
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Last modified: May 25, 2011