- 7 -
to litigation fees because she is the prevailing party within the
meaning of section 7430(c)(4)(E)(i), because the judgment is less
than her qualified offer.
Discussion
A. Prevailing Party Generally
Section 7430(a) authorizes the award of reasonable
litigation costs paid or incurred in a court proceeding which is
brought by or against the United States in connection with the
determination, collection, or refund of any tax, interest, or
penalty under the Internal Revenue Code. The taxpayer must
establish that she: (1) Is the prevailing party; (2) has
exhausted the available administrative remedies; (3) has not
unreasonably protracted the court proceedings; and (4) has
claimed litigation costs that are reasonable. Sec. 7430(a) and
(b)(1), (3). The taxpayer bears the burden of proving that these
requirements are met. Rule 232(e). A taxpayer is generally the
prevailing party if the taxpayer substantially prevailed with
respect to either the amount in controversy or the most
significant issue or set of issues. Sec. 7430(c)(4)(A). Under
section 7430(c)(4)(B), even if the taxpayer meets the
requirements of a prevailing party under section 7430(c)(4)(A),
the taxpayer will not be treated as a prevailing party if the
Commissioner’s position in the proceeding was substantially
justified.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007