Tax News

CCH (cch.taxgroup.com) reports:

  A federal district court's decision denying attorney's fees to an individual after the government voluntarily dismissed its petition to enforce IRS summonses was remanded. The district court implicitly treated the individual as a prevailing party by awarding him litigation costs, but denied his request for attorney's fees on the ground that he failed to show that the government acted in bad faith or vexatiously. However, to prevail on a claim for attorneys' fees under Code Sec. 7430, the individual was not required to show that the government acted in bad faith, but that he was a prevailing party and that the government's position was not substantially justified.

  The case was remanded for the district court to determine whether the individual was a prevailing party entitled to attorney's fees and whether the administrative-exhaustion requirement under Code Sec. 7430 was satisfied.

  Unpublished opinion vacating and remanding an unreported DC N.Y. decision.

C. Cathcart, CA-2, 2008-2 USTC ¶50,522

Other References:

 
Code Sec. 7430

  CCH Reference - 2008FED ¶41,743.68

  Tax Research Consultant

  CCH Reference - TRC LITIG: 3,150
CCH Reference - TRC LITIG: 3,154.05