Thomas Corson - Page 7

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                                     Discussion                                       
               Section 7430(a) authorizes the award of reasonable                     
          litigation costs to the prevailing party in court proceedings               
          brought by or against the United States in connection with the              
          determination of income tax.  In addition to being the prevailing           
          party, in order to receive an award of reasonable litigation                
          costs, a taxpayer must exhaust administrative remedies and not              
          unreasonably protract the court proceeding.  Sec. 7430(b)(1),               
          (3).  Unless the taxpayer satisfies all of the section 7430                 
          requirements, we do not award costs.  Minahan v. Commissioner, 88           
          T.C. 492, 497 (1987).                                                       
               Section 7430(c)(4)(A) and (B)(i) provides that a taxpayer is           
          a prevailing party if (1) the taxpayer substantially prevailed              
          with respect to the amount in controversy or the most significant           
          issue or set of issues, (2) the taxpayer meets the net worth                
          requirements of 28 U.S.C. section 2412(d)(2)(B) (2000), and (3)             
          the Commissioner’s position in the court proceeding was not                 
          substantially justified.  See also sec. 301.7430-5(a), Proced. &            
          Admin. Regs.  Although the taxpayer has the burden of proving               


               4(...continued)                                                        
          affidavit filed pursuant to Rule 232(d) and the attached detailed           
          summary of costs, we conclude that the court costs and “fees paid           
          or incurred for the services of attorneys in connection with the            
          court proceeding” totaled $2,676.32.  See sec. 7430(c)(1); see              
          also Sokol v. Commissioner, 92 T.C. 760, 767 n.12 (1989) (“The              
          costs incurred in seeking an award of litigation costs may be               
          included in the award.”).                                                   





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