- 5 -
1. Exhaust administrative remedies. Sec. 7430(b)(1).
Respondent concedes that petitioners meet this requirement.
2. Substantially prevail with respect to the amount in
controversy. Sec. 7430(c)(4)(A)(i)(I). Respondent concedes that
petitioners substantially prevailed.
3. Be an individual whose net worth did not exceed $2
million when the petition was filed. Sec. 7430(c)(4)(A)(ii); 28
U.S.C. sec. 2412(d)(2)(B) (1988). Petitioners meet this
requirement.
4. Not unreasonably protract the proceedings. Sec.
7430(b)(3). Respondent concedes that petitioners meet this
requirement.
5. Establish that the amount of costs and attorney’s fees
claimed are reasonable. Sec. 7430(a), (c)(1). Respondent
concedes that the number of attorney hours and other costs
claimed by petitioners are reasonable.
The taxpayer is not entitled to an award for reasonable
litigation costs if the Commissioner shows that the position of
the United States in the proceeding was substantially justified.
Sec. 7430(c)(4)(B)(i).
B. Whether Respondent’s Position Was Substantially Justified
1. Background
The parties dispute whether respondent’s position in the
underlying proceeding was substantially justified.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011