Gabino Diaz - Page 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
Generally, under section 7430 a taxpayer may recover from
respondent costs relating to litigation in which the taxpayer
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 the
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Last modified: November 10, 2007