TaxProfBlog – Lesson From The Tax Court: The Finality Rule For 7430 Qualified Offers (March 14, 2022)

Bryan Camp has published an article on the TaxProf Blog, titled “Lesson From The Tax Court: The Finality Rule For §7430 Qualified Offers”, which discusses the difficulty of recovering costs and attorneys fees after successful litigation against the IRS. The article begins as follows:

When you litigate against the IRS you may win but not prevail.  That is, even though §7430(a) promises that a “prevailing party” can recover costs and attorneys fees, it’s hard to be a “prevailing party” within the meaning of the statute.  If the government’s ultimately losing position was substantially justified at the relevant time, the winning taxpayer won’t be a prevailing party.  Sometimes that leads to a seemingly strange result that even if the Office of Appeals badly messes up, the taxpayer will not be a prevailing party if Chief Counsel catches the error and promptly concedes.  Keith Fogg blogged a good example of this over at Procedurally Taxing last week.

Click here to see the full article: “Lesson From The Tax Court: The Finality Rule For §7430 Qualified Offers”

Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal

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