- 16 -
factual differences, Haas Associates Accountancy Corp. does not
dictate the result in this case.
In explaining the exhaustion of administrative remedies
provision the House of Representatives Ways and Means Committee’s
report states:
* * * This provision of the bill is intended to
preserve the role that the administrative appeals
process plays in the resolution of tax disputes by
requiring taxpayers to pursue such remedies prior to
litigation. A taxpayer who actively participates in
and discloses all relevant information during the
administrative stages of the case will be considered to
have exhausted the available administrative remedies.
Failure to so participate and disclose information may
be sufficient grounds for determining that the taxpayer
has not exhausted administrative remedies and,
therefore, is ineligible for an award of litigation
costs.
The committee recognizes that the exhaustion of
remedies requirement may be inappropriate in some
cases. * * * Therefore, taxpayers are required to
exhaust available administrative remedies unless the
court determines that, under the circumstances of the
case, such requirement is unnecessary. [H. Rept. 97-
404, at 13 (1981); emphasis added.]
See Staff of Joint Comm. on Taxation, General Explanation of the
Tax Equity and Fiscal Responsibility Act of 1982 (the so-called
Blue Book), at 448 (J. Comm. Print 1982).
The cited legislative history shows Congress enacted the
exhaustion of administrative remedies requirement because it was
concerned with taxpayers attempting to bypass administrative
review, which would create an incentive to undermine a principal
forum to resolve a dispute. See also Payment of Attorneys’ Fees
in Tax Litigation: Hearing Before the Subcomm. on Select Revenue
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011