- 4 - litigation costs if the taxpayer establishes that he or she is the prevailing party, has exhausted administrative remedies, has not unreasonably protracted the court proceedings, and has claimed reasonable litigation costs.5 Sec. 7430(a), (b)(1), (3), (c)(4). A taxpayer bears the burden to prove that he or she satisfies these requirements. Rule 232(e); Corson v. Commissioner, 123 T.C. 202, 205-206 (2004). Prevailing Party To be a prevailing party, the taxpayer must substantially prevail with respect to either the amount in controversy or the most significant issue or set of issues presented, and must satisfy the net worth requirements. See sec. 7430(c)(4)(A); 28 U.S.C. sec. 2412(d)(2)(B)(2000). The taxpayer will not be treated as a prevailing party, however, if the Commissioner’s position in the court proceeding was substantially justified. Sec. 7430(c)(4)(B). The Commissioner has the burden to prove that his position was substantially justified. See sec. 7430(c)(4)(B)(i); Rule 232(e). Respondent concedes that petitioner substantially prevailed and met the net worth requirements. See sec. 7430(b) and (c)(4)(A). Respondent contends, however, that petitioner is not 5Respondent concedes that petitioner did not unreasonably protract proceedings. See sec. 7430(b)(3).Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011