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under 26 U.S.C. § 3402(a)” and remanded the case “for
consideration of the narrow issue of whether 26 U.S.C. § 3402(d)
provides Petitioner with any relief from the collection of those
taxes and, if so, for recalculation of the amounts owed.” See W.
Mgmt., Inc. v. Commissioner, 176 Fed. Appx. at 782.
On March 14, 2007, the Court filed petitioner’s motion for
litigation costs. On April 26, 2007, the Court filed
respondent’s objection.
Discussion
Petitioner may recover reasonable litigation costs if it
establishes that it is the prevailing party, meets the net worth
requirements, has exhausted administrative remedies, has not
unreasonably protracted the court proceedings, and has claimed
reasonable litigation costs. Sec. 7430(a), (b)(1), (3), (c)(4);
Corson v. Commissioner, 123 T.C. 202, 205-206 (2004). These
requirements are conjunctive, and failure to satisfy any one will
preclude an award of costs to petitioner. Minahan v.
Commissioner, 88 T.C. 492, 497 (1987). Petitioner contends that
it is entitled to litigation costs because it substantially
prevailed with respect to the most significant issues. We
disagree.
To be a prevailing party, petitioner must establish that it
substantially prevailed with respect to either the amount in
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Last modified: November 10, 2007