- 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). Section
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011