- 5 - The parties agree that an evidentiary hearing is not required. We base our decision on the pleadings, petitioners’ motion for litigation and administrative costs, petitioners’ supporting affidavits, and the various responses and counter- responses filed by the parties. Discussion A. Background Section 7430(a) allows, in specified circumstances, for an award of reasonable litigation and administrative costs “incurred” in an administrative or court proceeding brought against the United States in connection with the determination of any tax, interest, or penalty pursuant to the Internal Revenue Code. This award for costs is generally available only if the taxpayer is the “prevailing party”, did not unreasonably protract the administrative or judicial proceedings, and exhausted available administrative remedies.5 Sec. 7430(a); see sec. 7430(b)(1) and (3). Respondent concedes that petitioners are the “prevailing party” in this matter, that they did not unreasonably protract the proceedings, and that they exhausted all administrative remedies. Respondent also concedes that petitioners are entitled to recover the $60 fee for filing their petition in this case. 5 We may award costs pursuant to sec. 7430 even though we decide that the underlying case should be dismissed for lack of jurisdiction. Weiss v. Commissioner, 88 T.C. 1036 (1987).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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