James O. Jondahl - Page 2

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          petitioner is entitled to the costs of litigating his Federal tax           
          liability for the years 1990, 1991, 1992, and 1993 after he                 
          conveyed a purported qualified offer in a letter to respondent              
          dated April 27, 2004.  We hold that the letter of April 27, 2004,           
          was a qualified offer and that petitioner is entitled to his                
          litigation costs paid or incurred after conveying this offer.               
                                     Background                                       
               The underlying facts of this case are set forth in detail in           
          Jondahl v. Commissioner, T.C. Memo. 2005-55.  We briefly revisit            
          some of the factual and procedural background to rule on the                
          instant motion.                                                             
               Respondent determined deficiencies in petitioner’s 1990,               
          1991, 1992, and 1993 Federal income taxes of $25,438, $2,883,               
          $9,883, and $35,876, respectively.  Respondent also determined              
          fraud penalties under section 6663 for 1990, 1991, 1992, and 1993           
          of $19,078.50, $2,162.25, $7,412.25, and $26,907, respectively.             
          Respondent sent a notice of deficiency to petitioner on May 22,             
          2002.  On August 20, 2002, petitioner timely filed a petition in            
          this Court challenging respondent’s determinations.                         
               On April 27, 2004, petitioner sent respondent a letter                 
          indicating his willingness to settle this litigation and                    
          purporting to convey a qualified offer under section 7430(g).  In           
          part, petitioner wrote:                                                     
               The taxpayer, as his qualified offer, agrees to                        
               establish as the taxpayer’s liability (determined                      





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