- 7 - temporary regulations under section 7430(c)(4)(E). With regard to the policy argument, petitioners quote from the Senate report associated with section 7430(c)(4)(E) as follows: The Committee believes that settlement of tax cases should be encouraged whenever possible. Accordingly, the Committee believes that the application of a rule similar to FRCP 68 is appropriate to provide an incentive for the IRS to settle taxpayers’ cases for appropriate amounts, by requiring reimbursement of taxpayer’s costs when the IRS fails to do so. [S. Rept. 105-174, at 48 (1998), 1998-3 C.B. 537, 584.] Petitioners emphasize the purpose underlying rule 68 of the Federal Rules of Civil Procedure, namely, to encourage settlements and to reduce litigation. Fed. R. Civ. P. 68, Advisory Committee’s Note, 1946 Amendment, 28 U.S.C. app. at 801- 802 (2000); Marek v. Chesny, 473 U.S. 1, 5-7 (1985); Delta Air Lines, Inc. v. August, 450 U.S. 346, 352 (1981). Although technically applicable only to qualified offers made in administrative and court proceedings after January 3, 2001, petitioners emphasize that the temporary regulations promulgated under section 7430 support their interpretation of section 7430(c)(4)(E)(ii)(I) because the temporary regulations provide that the settlement limitation will apply only where the settlement occurs and the judgment is entered “exclusively” pursuant to a settlement. Sec. 301.7430-7T(f), Temporary Proced. & Admin. Regs., 66 Fed. Reg. 730 (Jan. 4, 2001). SectionPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
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