-4- respondent during the audit did not adequately substantiate petitioner’s claimed deductions. Before the scheduled trial date, the case was referred back to respondent’s Appeals Office, and petitioner submitted additional documentation relating to petitioner’s claimed deductions. A number of conferences occurred in which petitioner’s counsel met with respondent’s Appeals officer and discussed the deductions in question and explained the documentation that had been submitted. On February 16, 2007, respondent agreed to settle, and petitioner and respondent stipulated that $30,905 of the total $36,182 claimed Schedule A deductions that had been disallowed were allowable and that all other issues were resolved. On March 12, 2007, petitioner filed a motion for litigation costs requesting reimbursement for legal fees incurred by petitioner. Discussion Generally, under section 7430 a taxpayer may recover from respondent costs relating to litigation in which the taxpayer substantially prevails. Recoverable litigation costs include court costs and reasonable attorney’s fees. Sec. 7430(c)(1); Dunaway v. Commissioner, 124 T.C. 80 (2005). Litigation costs may be awarded if, among other things, the taxpayer: (1) Is thePage: Previous 1 2 3 4 5 6 7 NextLast modified: November 10, 2007