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proceed. On December 18, 2003, petitioner’s motion for award of
reasonable litigation costs was filed.
Discussion
Petitioner’s motion is for reasonable litigation costs,
which may be awarded only if the taxpayer satisfies all of the
requirements set forth in section 7430. Goettee v. Commissioner,
124 T.C. 286, 289 (2005); Minahan v. Commissioner, 88 T.C. 492,
497 (1987). In relevant part, section 7430(a) provides that the
prevailing party may be awarded reasonable litigation costs in
connection with any court proceeding brought by or against the
United States for the determination of any tax. In addition to
being the prevailing party, to be eligible for litigation costs,
a taxpayer must have: (1) Exhausted all administrative remedies,
and (2) not unreasonably protracted the underlying proceeding.
Sec. 7430(b)(1), (3).
A taxpayer is generally the prevailing party if it
substantially prevailed with respect to either the amount in
controversy or the most significant issue or set of issues and if
it meets the net worth requirement set forth in the Equal Access
to Justice Act, 28 U.S.C. sec. 2412(d)(2)(B). Sec.
7430(c)(4)(A). The taxpayer bears the burden of proving that
these requirements are met. Rule 232(e). Even if the taxpayer
satisfies all of the stated requirements, section 7430(c)(4)(B)
expressly provides that a taxpayer shall not be treated as the
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