Richard Edwin and Eva Ruth Elder - Page 6




                                        - 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