- 6 - On April 15, 2003, respondent filed an objection to petitioner’s motion for award of litigation costs. Respondent contends that petitioner is not the prevailing party within the meaning of section 7430(c)(4)(B)(i) because respondent’s position was substantially justified. In addition, respondent contends that petitioner unreasonably protracted the proceedings. Petitioner requests a hearing on the motion if respondent contests the motion. We, however, conclude that a hearing is not necessary. Rule 232(a)(2). Accordingly, we decide petitioner’s motion on the basis of the motion with affidavits and respondent’s objection with exhibits. Discussion Subject to certain limitations, the prevailing party in any court proceeding may be awarded a judgment for reasonable litigation costs incurred in connection with such court proceeding. Sec. 7430(a)(2). The prevailing party must exhaust the administrative remedies available to it within the Internal Revenue Service, and the prevailing party must not have unreasonably protracted any portion of the administrative or court proceeding. See sec. 7430(b)(1), (3). The term “prevailing party” means “any party * * * which (I) has substantially prevailed with respect to the amount in controversy, or (II) has substantially prevailed with respect to the most significant issue or set of issues presented”. Sec.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011