- 23 -
Section 530(e)(1) provides that the Internal Revenue Service
“shall, before or at the commencement of any audit inquiry
relating to the employment status of one or more individuals who
perform services for the taxpayer, provide the taxpayer with a
written notice of the provisions of this section.” Small
Business Job Protection Act of 1996 sec. 1122(a), 110 Stat. 1766.
On brief, petitioner alleges that it learned of the existence of
Section 530 only through the June 8, 2001, notice of
determination, which postdated by a substantial margin the
commencement on July 2, 1999, of the underlying employment tax
audit. Petitioner then states:
The inaction of Respondent in not providing Petitioner
with the required Sect. 530(e)(1) notice constitutes a
serious Constitutional violation of Petitioner’s right
to due process, and Petitioner moves this Court to
allow it to recover its legal fees, since the conduct
of Respondent is so egregious against the Petitioner.
To the extent that petitioner’s due process contentions take
the form of a claim for litigation or administrative costs and
fees under section 7430, such claim is premature. Rule
231(a)(2), as pertinent here, specifies that the appropriate time
to seek recovery of legal costs follows service of a written
opinion. See McWilliams v. Commissioner, 104 T.C. 320, 327
(1995); Groetzinger v. Commissioner, 87 T.C. 533, 548 (1986).
Furthermore, even if petitioner’s allegations might be read
as a plea encompassing other remedies, petitioner has failed to
show that its situation satisfies the prerequisites for relief
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011