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to the taxpayer, that is signed by an individual in the Office of
Appeals who has been delegated the authority to settle the
dispute on behalf of the Commissioner, and states or indicates
that the notice is the final determination of the entire case.”
Sec. 301.7430-3(c)(2), Proced. & Admin. Regs. (the regulation
also treats a notice of claim disallowance issued by the Office
of Appeals as a notice of decision, but this relates to claims
for refund, which is not our situation).
A 30-day letter does not constitute a position of the United
States, and a proposed notice of deficiency, circulated within
the IRS and not sent to taxpayers, is not a notice of deficiency
for purposes of section 7430(c)(7)(B)(ii). Fla. Country Clubs,
Inc. v. Commissioner, supra.
III. Contentions of the Parties
Respondent contends that petitioners are not “prevailing
parties” for purposes of section 7430(c)(4) and cannot recover
administrative costs because the Appeals Office never took a
position through a notice of decision.
Petitioners maintain that the December 1995 letter sent by
AO Rawley was an Appeals Office notice of decision. Petitioners
specifically assert that the December 1995 letter was the final
determination of the entire case because the document indicated
that the Appeals Office had completed its consideration and
returned the cases to the District Director.
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Last modified: May 25, 2011