John J. Petito - Page 14




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          administrative or litigation costs to the extent that petitioner            
          unreasonably protracted the proceedings in this case.  Respondent           
          points primarily to the number and length of the motions that               
          petitioner filed with the Court.                                            
               Although most of petitioner’s submissions to the Court were            
          verbose, we note that petitioner is not a lawyer and he was                 
          acting pro se in this matter.  Considering all the circumstances,           
          we reject the assertion that petitioner unreasonably protracted             
          the proceedings within the meaning of section 7430(b)(3).  See,             
          e.g., Mearkle v. Commissioner, 90 T.C. 1256 (1988).                         
          C.  Administrative and Litigation Costs Associated With Criminal            
          Proceedings                                                                 
               Respondent contends that petitioner is not entitled to                 
          administrative or litigation costs associated with the criminal             
          investigation and petitioner’s subsequent indictment.  We agree.            
               Section 7430 permits an award of reasonable administrative             
          costs incurred in connection with an administrative proceeding              
          within the IRS and reasonable litigation costs incurred in                  
          connection with a court proceeding.  Section 7430(c)(6) defines             
          the term “court proceeding” to mean any civil action.                       
          Accordingly, petitioner is barred in this action from claiming              
          litigation costs associated with the criminal proceedings brought           
          against him.  Similarly, the flush language of section 7430(c)(2)           
          limits the term “reasonable administrative costs” to costs                  
          incurred on or after the earlier of the taxpayer’s receipt of a             





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