Bale Chevrolet Co. v. United States

SMITH, Circuit Judge.

The Internal Revenue Service (IRS) imposed $100,000 in intentional disregard penalties against Bale Chevrolet Company (“Bale”) for failing to file required Forms 8300 information returns. Bale paid the penalty but later challenged the fine in district court. 2 Subsequently, the IRS and Bale settled the matter, and the IRS rescinded the penalty. Bale submitted a motion for fees pursuant to I.R.C. § 7430 arguing that the government’s position regarding the intentional disregard penalties lacked “substantial justification.” The district court denied the fees motion citing…