Opinion
20933-21S
12-21-2023
DINESH PATEL & SILVIA CASTELLINI-PATEL, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Peter J. Panuthos, Special Trial Judge.
This case is calendared for trial at the February 5, 2024, San Francisco, California trial session of the Court. On December 20, 2023, the Court held a conference call with the parties. Respondent advised that the case had been conceded by the IRS, but that petitioners objected to signing decision documents. Petitioner, Dinesh Patel informed the Court that petitioners are seeking award of costs incurred by this case.
Section 7430(a)(1) provides that a taxpayer under limited and prescribed circumstances may be awarded reasonable administrative costs incurred in connection with a proceeding before the IRS if the taxpayer prevails in the proceeding. Section 7430(a)(2) provides that a taxpayer under limited and prescribed circumstances may be awarded reasonable litigation costs incurred in connection with a tax proceeding in the Tax Court. Tax Court Rule 231 explains how and when a taxpayer should make a claim for administrative and/or litigation costs. See also Rule 230(a) (cross-referring to Rules 230 to 233).
Unless otherwise indicated, statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times and Rule references are to the Tax Court Rules of Practice and Procedure.
To the extent petitioners intend to file a motion for reasonable administrative and/or litigation costs, petitioners are advised to carefully read section 7430 and applicable Tax Court Rules. Petitioner should specify how any claimed facts fit within the language of the statute. Upon the filing of such motion, the Court may provide respondent an opportunity to file an objection. The Court also encourages the parties to communicate and see if there is any agreement as to a claim for costs.
Upon due consideration, it is
ORDERED that, if petitioners decide to make a claim for costs, on or before January 12, 2024, petitioners shall file a Motion for Reasonable Litigation or Administrative Costs, along with any necessary statements, affidavits, or declarations.