- 35 -
10/24/02 Draft of request .25
for Appeals Office
conference
10/29/02 Draft of request .25
for Appeals Office
conference
2/28/03 - 3/28/03 Review and analysis 13.25
of IRS Notice of
Determination of
Worker
Reclassification,
several conferences
with client and her
workers. Research of
Federal tax laws and
numerous cases
The issue for decision is whether these are recoverable as
litigation fees.
Section 301.7430-4(c)(3)(i), Proced. & Admin. Regs.,
provides that litigation costs include “Costs incurred in
connection with the preparation and filing of a petition with the
United States Tax Court or in connection with the commencement of
any other court proceeding”. Two examples are provided in
section 301.7430-4(c)(4), Proced. & Admin. Regs.,7 and we find
aspects of the reasoning of each to be applicable here. Section
301.7430-4(c)(4), Examples (1) and (2), Proced. & Admin. Regs.,
provides:
7We note that the Internal Revenue Service Restructuring and
Reform Act of 1998, Pub. L. 105-206, sec. 3101(a)(2), 112 Stat.
727, expanded the period for which administrative costs are
recoverable. See sec. 7430(c)(2)(B). Although the examples have
not been updated to reflect this change, petitioner has requested
only litigation costs; thus, the examples are applicable here.
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