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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.
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