- 7 - section 7430(g). Thus, petitioner’s offer is not a qualified offer, because it fails to meet the requirements of section 7430(g)(1)(C). Accordingly, petitioner is not entitled to administrative or litigation costs. Assuming arguendo that petitioner’s offer was a qualified offer, petitioner, the prevailing party, would still not be entitled to recover any administrative and litigation costs. With respect to administrative costs, taxpayers who make qualified offers, pursuant to section 7430(g), may recover only reasonable administrative costs that are “incurred on and after the date of such offer.” Sec. 7430(c)(4)(E)(iii)(II). In addition, all costs incurred after the filing of a petition are considered litigation costs. Sec. 301.7430-4(c)(3)(ii) and (4), Example (2), Proced. & Admin. Regs. Petitioner filed his petition in December of 2001 and made his offer to respondent in June of 2003. Thus, even if petitioner had made a qualified offer, he would not be awarded any reasonable administrative costs, because it was made after he filed his petition with the Court. In addition, petitioner would not be entitled to litigation costs, because he failed to exhaust all administrative remedies. Sec. 7430(b)(1). Taxpayers cannot exhaust all administrative remedies unless-- (i) The party, prior to filing a petition in the Tax Court * * * participates * * * in an AppealsPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011