Michael J. Downing and Sandra M. Downing - Page 12

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               In general, the requirements of section 7430 are in the                
          conjunctive; i.e., the taxpayer must satisfy each of them in                
          order to succeed.  See Corson v. Commissioner, 123 T.C. 202, 205-           
          206 (2004); Minahan v. Commissioner, 88 T.C. 492, 497 (1987).               
          Respondent concedes that Sandra (1) “substantially prevailed”               
          (sec. 7430(c)(4)(A)(i)), (2) exhausted available administrative             
          remedies (sec. 7430(b)(1)), and (3) met the net worth                       


               4(...continued)                                                        
                    *      *      *      *      *      *      *                       
                    (g)  Qualified Offer.--For purposes of subsection                 
               (c)(4)--                                                               
                         (1)  In general.–-The term “qualified offer” means           
                    a written offer which--                                           
                              (A) is made by the taxpayer to the                      
                         United States during the qualified offer                     
                         period                                                       
                              (B) specifies the offered amount of the                 
                         taxpayer’s liability (determined without                     
                         regard to interest);                                         
                              (C) is designated at the time it is made                
                         as a qualified offer for purposes of                         
                         this section; and                                            
                              (D) remains open during the period                      
                    beginning on the date it is made and ending                       
                         on the earliest of the date the offer is                     
                    rejected, the date the trial begins, or the                       
                    90th day after the date the offer is made.                        
          The “qualified offer” alternative (secs. 7430(c)(4)(E) and (g))             
          was enacted after the petition in the instant case was filed; it            
          applies to costs incurred after January 18, 1999.  Secs. 3101(e)            
          and (g) of the Internal Revenue Service Restructuring and Reform            
          Act of 1998, Pub. L. 105-206, 112 Stat. 685, 728, 729.                      





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