- 10 - The regulations under section 7430, requiring a party to pursue administrative remedies within the Internal Revenue Service, are subject to various limited exceptions. See sec. 301.7430-1(f), Proced. & Admin. Regs. Petitioners’ motion and accompanying brief, however, give us no reason to believe that any such exception is applicable in this case, nor do petitioners’ motion and brief suggest that the statutory rule requiring exhaustion of administrative remedies is otherwise unnecessary. The entire discussion of this issue in petitioners’ brief is as follows: “The statutory notice of deficiency was issued by the Internal Revenue Service on August 12, 1998. Curtis and Mary Ettesvold pursued all of their administrative remedies.” For the above reasons, we cannot determine, on the basis of the record, that petitioners exhausted their administrative remedies in the Internal Revenue Service. See sec. 301.7430-1(b)(1)(i), Proced. & Admin. Regs. Accordingly, we hold that petitioners are not eligible, pursuant to the limitations of section 7430(b)(1), to be awarded reasonable litigation costs. See Haas & Associates Accountancy Corp. v. Commissioner, 117 T.C. 48 (2001), affd. 55 Fed. Appx. 476 (9th Cir. 2003); Patel v. Commissioner, T.C. Memo. 1998-306.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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