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By letter dated April 1, 2005, Mr. Kapp, on behalf of
petitioners, sent to respondent a “qualified offer” pursuant to
section 7430(g), in which petitioners offered to settle the 2002
deficiency for $500.
On April 8, 2005, petitioners filed a petition with the
Court, challenging respondent’s determinations in the notice of
deficiency. Shortly thereafter, petitioners received from the
Appeals Office a letter dated May 12, 2005, in which an Appeals
officer noted that petitioners “did not have the opportunity to
present documents, books, records” to support the deductions
claimed on their return.
On February 6, 2006, the parties settled all of the disputed
tax adjustments, and the terms of the settlement were read into
the record by respondent. Petitioners subsequently filed their
motion, in which they seek to recover the fees for services
performed by Mr. Kapp and his accounting firm. Concurrently with
the motion, the parties filed with the Court a stipulation of
settled issues that reflects the resolution of petitioners’
Federal income tax liabilities for 2002.
Discussion
Requirements Under Section 7430
Section 7430(a) authorizes the award of reasonable
litigation costs incurred in a court proceeding that is brought
by or against the United States in connection with the
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Last modified: May 25, 2011