Bernardo Paz - Page 3

                                        - 3 -                                         
          53.97 percent of the future lottery payments and his wife would             
          receive 46.03 percent.  Petitioner and his wife were divorced in            
          December 1995.  Petitioner reported $175,000 (i.e., one-half) of            
          the $350,000 lottery payment in his 1995 return.                            
          B.   The Notice of Deficiency                                               
               On August 2, 2000, respondent sent a notice of deficiency to           
          petitioner in which respondent determined that petitioner was               
          taxable on the entire $350,000 lottery payment in 1995.                     
          Respondent also determined that petitioner failed to include all            
          of his interest income in 1995 and that petitioner was liable for           
          the addition to tax for failure to timely file his 1995 return.             
          C.   Settlement of the Case                                                 
               The parties settled the case before trial.  Respondent                 
          conceded the lottery payment issue, and petitioner conceded the             
          interest income and late filing issues.                                     
          A.   Motion for Litigation Costs:  Background                               
               To be entitled to an award for litigation costs, the                   
          taxpayer must:                                                              
               1.  Exhaust administrative remedies.  Sec. 7430(b)(1).                 
          Respondent concedes that petitioner meets this requirement.                 
               2.  Substantially prevail with respect to the amount in                
          controversy.  Sec. 7430(c)(4)(A)(i)(I).  Respondent concedes that           
          petitioner meets this requirement.                                          

Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011