Hung N. Nguyen - Page 8

                                        - 8 -                                         
               A.  Requirements for a Judgment Under Section 7430                     
               Under section 7430(a), a judgment for administrative costs             
          incurred in connection with an administrative proceeding may be             
          awarded under section 7430(a) only if a taxpayer:  (1) Is the               
          prevailing party; and (2) did not unreasonably protract the                 
          administrative proceeding.  Sec. 7430(a) and (b)(3).  Similarly,            
          a judgment for litigation costs incurred in connection with a               
          court proceeding may be awarded only if a taxpayer:  (1) Is the             
          prevailing party; (2) has exhausted his or her administrative               
          remedies within the IRS; and (3) did not unreasonably protract              
          the court proceeding.  Sec. 7430(a) and (b)(1), (3).                        
               A taxpayer must satisfy each of the respective requirements            
          in order to be entitled to an award of administrative or                    
          litigation costs under section 7430.  Rule 232(e).  Upon                    
          satisfaction of these requirements, a taxpayer may be entitled to           
          reasonable costs incurred in connection with the administrative             
          or court proceeding.  See sec. 7430(a)(1) and (2), (c)(1), and              
          (2).                                                                        
               To be a “prevailing party”, the taxpayer must:  (1)                    
          Substantially prevail with respect to either the amount in                  
          controversy or the most significant issue or set of issues                  
          presented; and (2) satisfy the applicable net worth requirement.            
          Sec. 7430(c)(4)(A).  Respondent concedes that petitioner has                
          satisfied the requirements of section 7430(c)(4)(A).  Petitioner            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011