Timothy J. Coburn - Page 17

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          subsequent abandonment of the collateral by the lender would have           
          no Federal income tax consequences for the debtor.                          
               Moreover, as we noted in Coburn I, Cozzi v. Commissioner, 88           
          T.C. 435 (1987), is of limited precedential value under the facts           
          of the instant case.  The parties in Cozzi did not dispute                  
          whether the abandonment of collateral results in gain on the sale           
          or other disposition of property or in discharge of indebtedness            
          income, and, consequently, the Court did not address the issue.             
               On the basis of the foregoing, we conclude that respondent’s           
          position did not have a reasonable basis in either law or fact.             
          Additionally, respondent failed to maintain that position with              
          consistency and accuracy throughout the instant proceedings.                
          Accordingly, we hold that, for purposes of section                          
          7430(c)(4)(B)(i), respondent has failed to establish that                   
          respondent’s position was substantially justified.  We now turn             
          to our analysis of whether the amount of litigation costs                   
          petitioner seeks is reasonable.                                             
          Reasonable Litigation Costs                                                 
               “Reasonable litigation costs” include reasonable court costs           
          and reasonable fees paid or incurred for the services of                    
          attorneys in connection with the court proceeding.  Sec.                    
          7430(c)(1)(A), (B)(iii).  Pursuant to section 7430(c)(1), the               
          amount of attorney’s fees that may be awarded is limited to a               
          statutorily prescribed amount, as adjusted for inflation.  For              






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