- 5 -
limitations. He would not accept any documentation to support
deductions. [Eighty percent] of all deductions can be
substantiated”. Moreover, petitioner contends in the petition
that she was entitled to: (1) Head of household filing status,
(2) a dependency exemption for her daughter, (3) an earned income
credit, and (4) a child tax credit.
On September 12, 2005, the parties submitted a stipulation
of settlement, signed by the parties’ counsel, which reflects the
resolution of petitioner’s Federal income tax liabilities for
2000 and 2001.
Discussion
Requirements Under Section 7430
Section 7430(a) authorizes the award of reasonable
litigation costs incurred in a 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 under the Internal Revenue Code. The taxpayer must
establish that the taxpayer: (1) Is the prevailing party, (2)
has exhausted available administrative remedies, (3) has not
unreasonably protracted the court proceedings, and (4) has
claimed litigation costs that are reasonable. Sec. 7430(a) and
(b)(1), (b)(3).
A taxpayer must satisfy each of the respective requirements
before litigation costs under section 7430 may be awarded. See
Rule 232(e). Upon satisfaction of these requirements, a taxpayer
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011