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30-day letters sent to petitioners during September and October
of 1997;11 and (2) the reviewer’s proposal, dated March 27, 1998.
A. The Initial 30-Day Letters
Although petitioners acknowledge respondent issued 30-day
letters to them during September and October of 1997, petitioners
fail to develop this theory or make any comprehensible argument
regarding the 30-day letters. Congress amended section 7430(c)
in RRA 1998 to incorporate 30-day letters. We now address
whether our conclusion that administrative costs are not
recoverable unless the Government takes a “position” either in a
notice of deficiency or an Appeals Office decision is at odds
with the RRA 1998 amendment to section 7430(c).
In RRA 1998, Congress amended section 7430(c)(2), which
defines the term “reasonable administrative costs”, to include
costs incurred from the “the date on which the 1st letter of
proposed deficiency [the 30-day letter] which allows the taxpayer
an opportunity for administrative review in the Internal Revenue
Service Office of Appeals is sent.” Sec. 7430(c)(2). Prior to
the RRA 1998 amendment, “reasonable administrative costs” were
limited to those incurred after the date of the notice of
deficiency or Appeals Office decision (i.e., the same instances
11 Petitioners’ arguments with respect to the 30-day letter
are confusing and incomprehensible. Because 30-day letters were
issued in this case, we take this opportunity to address the
amendment RRA 1998 made to sec. 7430(c)(2).
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