- 8 - 206 (2004); Minahan v. Commissioner, 88 T.C. 492, 497 (1987). Respondent concedes that petitioners (1) exhausted available administrative remedies (sec. 7430(b)(1)) and (2) met the net worth requirements (subpars. (A)(ii) and (D)(ii) of sec. 7430(c)(4)). Respondent contends that (1) petitioners are not “the prevailing party” because (A) petitioners did not substantially prevail (sec. 7430(c)(4)(A)(i)) and (B) respondent’s position “was substantially justified” (sec. 7430(c)(4)(B)(i)); (2) the amount of costs petitioners claim is not reasonable (sec. 7430(a)(2)); and (3) petitioners “unreasonably protracted such proceedings” (sec. 7430(b)(3)). In order to be entitled to an award of litigation costs, one of the requirements is that petitioners have “substantially prevailed”. Although in general the requirements for an award are in the conjunctive, the substantially prevailed requirement is satisfied if petitioners satisfy either one of two statutory alternatives. We proceed to consider first whether petitioners substantially prevailed with respect to the most significant issue or set of issues presented (sec. 7430(c)(4)(A)(i)(II)), and then whether petitioners substantially prevailed with respect to the amount in controversy (sec. 7430(c)(4)(A)(i)(I)). A. Most Significant Issue The parties have stipulated that they “agree that the mostPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011