Timothy J. Coburn - Page 4

                                        - 4 -                                         
          or penalty.  Litigation costs may be awarded pursuant to section            
          7430 if (1) the taxpayer has exhausted administrative remedies,             
          (2) the taxpayer has not unreasonably protracted the court                  
          proceedings, (3) the taxpayer is the prevailing party, and (4)              
          the claimed litigation costs are reasonable.  Sec. 7430(a),                 
          (b)(1), (3), (c)(4).  Respondent concedes that petitioner                   
          exhausted all administrative remedies and did not unreasonably              
          protract the court proceedings.  We must decide whether                     
          petitioner is the prevailing party and whether the amount of                
          petitioner’s claimed litigation costs is reasonable.                        
          Prevailing Party                                                            
               To qualify as the prevailing party pursuant to section                 
          7430(c)(4)(A), the taxpayer must substantially prevail with                 
          respect to either the amount in controversy or the most                     
          significant issue or set of issues presented, and the taxpayer              
          must satisfy the net worth requirement of section                           
          7430(c)(4)(A)(ii).2  Respondent concedes that petitioner                    
          substantially prevailed with respect to the amount in controversy           
          and the most significant issue presented and that petitioner                
          satisfies the net worth requirement.                                        



               2Sec. 7430(c)(4)(A)(ii), as relevant here, effectively                 
          limits the award of litigation costs to individuals with a net              
          worth of $2 million or less.  Stieha v. Commissioner, 89 T.C.               
          784, 789-790 (1987).                                                        






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011