- 11 -
Government had not taken a position as defined in section
7430(c)(7), the taxpayer could not meet his or her burden of
showing that such position was not substantially justified and
could not recover administrative costs. See Ball v.
Commissioner, T.C. Memo. 1995-520 (noting that section 7430(c)(7)
“does not allow an award of administrative costs for a position
* * * [the Commissioner] takes before * * * [the Commissioner]
issues the notice of deficiency or Appeals issues a notice of
decision”); In re ACME Music Co., 208 Bankr. 838, 842 n.3 (Bankr.
W.D. Pa. 1997) (“until * * * [an Appeals Office decision] is
received by a taxpayer or a deficiency notice is issued, the
I.R.S. does not take any position in an administrative proceeding
and administrative costs cannot be recovered in any event”).
B. TBOR 2 Amendment to Section 7430(c)(4)
Congress amended section 7430(c)(4) in TBOR 2 to shift to
the Government the burden of establishing that its position was
substantially justified. Congress shifted the burden by amending
section 7430(c)(4)(B) to provide that a taxpayer cannot be a
prevailing party if the Government demonstrates that its position
7(...continued)
(ii) which--
(I) has substantially prevailed with respect
to the amount in controversy, or
(II) has substantially prevailed with respect
to the most significant issue or set of issues
presented, and * * *
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011