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that they meet each of the requirements of section 7430. Rule
232(e). Their failure to meet any one of the requirements of
section 7430 will preclude an award of costs. Minahan v.
Commissioner, 88 T.C. 492, 497 (1987).
Petitioners may recover litigation costs only if they meet
the net worth requirements referenced in 28 U.S.C. sec.
2412(d)(1)(B). Sec. 7430(c)(4)(A)(ii). An individual’s net
worth must not exceed $2 million at the time of filing of the
petition to commence a civil proceeding. 28 U.S.C. sec.
2412(d)(2)(B); Stieha v. Commissioner, 89 T.C. 784, 790 (1987).
A motion for litigation cost requires “A statement that the
moving party meets the net worth requirements, * * * which
statement shall be supported by an affidavit executed by the
moving party”. Rule 231(b)(4).
If a taxpayer, in a motion for litigation costs, fails to
sufficiently establish net worth, and the Commissioner challenges
whether the taxpayer has met the net worth requirements, the
taxpayer must provide additional evidence. See Estate of Hubberd
v. Commissioner, 99 T.C. 335, 341 (1992); Dixson Intl. Serv.
Corp. v. Commissioner, 94 T.C. 708, 719 (1990); see also Johnson
v. Commissioner, T.C. Memo. 1999-127 (holding that when a
taxpayer submits only a statement, accompanied by an affidavit,
the Court is not “compelled to accept petitioners’
unsubstantiated, conclusory, and self-serving assertion that they
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Last modified: May 25, 2011