- 4 -
involving the determination of any tax, interest, or penalty
pursuant to the Internal Revenue Code. An award of litigation
costs may be made where the taxpayer (1) is the “prevailing
party”, (2) exhausted available administrative remedies, (3) did
not unreasonably protract the judicial proceeding, and (4)
claimed reasonable litigation costs. Sec. 7430(a), (b)(1), (3),
and (c). These requirements are conjunctive, and failure to
satisfy any one will preclude an award of costs to petitioner.
See Minahan v. Commissioner, 88 T.C. 492, 497 (1987).
Respondent contends that petitioner unreasonably protracted
the proceedings and that the costs claimed are not reasonable.
I. Unreasonably Protracting the Proceedings
Pursuant to section 7430(b)(3), “No award for reasonable
* * * costs may be made * * * with respect to any portion of the
* * * court proceeding during which the prevailing party has
unreasonably protracted such proceeding.”
Respondent argues that petitioner unreasonably protracted
the proceedings by failing to fully participate in the Appeals
conference and provide evidence until the time of trial.
Petitioner contends that all the documents introduced in the
trial of this case were made available to respondent before the
issuance of the notice of deficiency.
Petitioner’s attorney did participate and meet with Appeals.
Moreover, there is no evidence that petitioner protracted the
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011