- 7 - less than the liability of the taxpayer which would have been so determined if the United States had accepted a qualified offer of the party under subsection (g).” Sec. 7430(g). The qualified offer provision of section 7430(c)(4)(E) applies without regard to whether the Commissioner’s position in the proceeding is substantially justified. See Haas & Associates Accountancy Corp. v. Commissioner, 117 T.C. 48, 59 (2001), affd. 55 Fed. Appx. 476 (9th Cir. 2003); McGowan v. Commissioner, T.C. Memo. 2005-80. The issues in this case are: (1) Whether petitioners exhausted their available administrative remedies, (2) whether the qualified offer provision applies, and (3) whether respondent’s position in the court proceeding was substantially justified. Exhaustion of Available Administrative Remedies Section 7430(b)(1) requires that taxpayers take advantage of all available administrative remedies to be eligible for an award of litigation costs. Haas & Associates Accountancy Corp. v. Commissioner, supra at 57. Section 301.7430-1(b)(1), Proced. & Admin. Regs., provides: A party has not exhausted the administrative remedies available within the Internal Revenue Service with respect to any tax matter for which an Appeals office conference is available under ��601.105 and 601.106 of this chapter (other than a tax matter described in paragraph (c) of this section) unless–- (i) The party, prior to filing a petition in the Tax Court * * * participates * * * in an Appeals office conference; orPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011