- 6 -
Petitioners’ case was assigned to an attorney for respondent
on December 5, 2006. Over the next 2 weeks, the parties
exchanged correspondence. In a letter dated December 19, 2006,
respondent’s counsel indicated she had read and agreed with the
legal analysis set forth in petitioners’ July 11 letter.
Respondent’s counsel also stated, however, that factual issues
remained unresolved. Respondent’s counsel asked for evidence
establishing that petitioners had held the Roth IRAs for 5 years
and that petitioners had incurred first-time homebuyer expenses.
Petitioners provided the requested information, and on January
10, 2007, respondent conceded that the distributions were not
taxable.
On January 24, 2007, Mr. Elder filed an entry of appearance.
In February 2007, petitioners filed the motion for an award of
administrative and litigation costs. Respondent filed an
objection to the motion, and petitioners filed a reply.
Discussion
I. In General
Section 7430(a) allows a taxpayer to recover reasonable
administrative and litigation costs. Recoverable costs include
reasonable court costs, postage expenses, and attorney’s fees.
Sec. 7430(c)(1) and (2); Dunaway v. Commissioner, 124 T.C. 80
(2005).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: November 10, 2007