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petitioner failed to exhaust his administrative remedies,
unreasonably protracted the proceedings, and claimed unreasonable
costs.
Neither party has requested a hearing, and we conclude that
a hearing is not necessary for the proper disposition of
petitioner’s motion. Rule 232(a)(2). Therefore, we decide
petitioner’s motion on the basis of the parties’ submissions and
the record developed to date. For the reasons described below,
we deny petitioner’s claim for costs and attorney’s fees.
Discussion
Section 7430 provides for the award of litigation costs in
any court proceeding which is brought by or against the United
States in connection with the determination, collection, or
refund of any tax, interest, or penalty pursuant to the Internal
Revenue Code. An award of litigation costs may be made where the
taxpayer is the “prevailing party”, has exhausted the
administrative remedies with the Internal Revenue Service, and
did not unreasonably protract the administrative or court
proceeding. See sec. 7430(b)(1), (3).
To be a prevailing party, the taxpayer must substantially
prevail with respect to either the amount in controversy or with
respect to the most significant issue or set of issues presented,
and, at the time the petition is filed, satisfy a net worth
requirement. Sec. 7430(c)(4)(A). Respondent has conceded that
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