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taxpayer must file a request for costs no later than 90
days after the date the final decision of the Internal
Revenue Service with respect to all tax, additions to
tax and penalties at issue in the administrative
proceeding is mailed, or otherwise furnished, to the
taxpayer. The final decision of the Internal Revenue
Service for purposes of this section is the document
which resolves the tax liability of the taxpayer with
regard to all tax, additions to tax and penalties at
issue in the administrative proceeding (such as a Form
870 or closing agreement), or a notice of assessment
for that liability (such as the notice and demand under
section 6303), whichever is earlier mailed, or
otherwise furnished, to the taxpayer. * * * [Emphasis
added.]
In sum, the Commissioner is not obliged to grant an award of
reasonable administrative costs unless the taxpayer files a
request for such costs no later than 90 days after the date that
the Commissioner mails a final decision regarding the tax,
additions to tax, and penalties to the taxpayer.
Our review of the record in this case leads us to conclude
that respondent did not issue a final decision to petitioner for
1984 and 1985 within the meaning of section 7430(b)(4).
Respondent’s letter dated March 19, 1998, arguably possesses some
of the characteristics of a final decision in that it contains a
clear explanation of respondent’s computation of petitioner’s tax
liabilities for 1984 and 1985. On the other hand, we are not
convinced that respondent intended that letter to be considered a
final decision. In addition, the letter is not the equivalent of
a Form 870 or formal closing agreement, and it cannot be
considered final in the technical sense of the term.
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Last modified: May 25, 2011