- 2 - the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. This case is before the Court on petitioner’s motion for award of litigation costs pursuant to section 7430. After concessions,1 the issue for decision is whether petitioner is a “prevailing party” that may be awarded a judgment for reasonable litigation costs incurred in connection with this court proceeding. As explained in further detail below, we hold that respondent’s position was substantially justified, and, therefore, we shall deny petitioner’s motion for award of litigation costs. Background Petitioner filed a Federal income tax return for the 1999 taxable year (1999 tax return). He claimed head-of-household filing status, the earned income credit, and two dependency exemption deductions. In April 2000, respondent began an examination of petitioner’s 1999 tax return by requesting documentation from petitioner to verify the claimed filing status, dependency exemption deductions, and earned income credit. Respondent then 1 Respondent concedes that petitioner has substantially prevailed with respect to the amount in controversy or has substantially prevailed with respect to the most significant issue or set of issues presented.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011