- 43 - V. Whether Petitioner Is Entitled to Litigation Costs Petitioner contends that he substantially prevailed with respect to the most significant issue presented in the proceeding before this Court,28 that he meets the net worth requirements of 28 U.S.C. 2412(d)(2)(B), that he exhausted administrative remedies, and that he did not unreasonably protract the court proceedings. Consequently, petitioner contends that he is entitled to litigation costs in the amount of $20,007.45. Section 7430(a) provides that an individual may recover litigation costs incurred in a court proceeding brought against the United States in connection with the determination of a tax or penalty. Litigation costs may be awarded pursuant to section 7430 if (1) the individual is the prevailing party, (2) the individual has exhausted administrative remedies, (3) the individual has not unreasonably protracted the court proceedings, and (4) the claimed litigation costs are reasonable. Sec. 7430(a), (b)(1), (3), (c)(4). The requirements of section 7430 are conjunctive, and the individual has the burden of proving that each of these requirements has been satisfied. See Rule 232(e); Minahan v. Commissioner, 88 T.C. 492, 497 (1987). 27(...continued) did not contact respondent’s Appeals officer to resolve any confusion. 28Specifically, petitioner contends that he prevailed in Drake I, on the basis of his argument that the initial sec. 6330 hearing was improper.Page: Previous 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Next
Last modified: May 25, 2011