Southeast Stores, Inc. v. Internal Revenue Service (In re Southeast Stores, Inc.)

MEMORANDUM OPINION

DOUGLAS O. TICE, Jr., Bankruptcy Judge.

The case is before the court on motion of the chapter 7 trustee requesting an award of attorneys fees and costs against the Internal Revenue Service (“IRS”) pursuant to 26 U.S.C. § 7430(a). The amount sought *161is $6,293.01. As his basis the trustee alleges IRS was “not substantially justified” in filing a proof of claim in the case in the amount of $202,878.92. The court ultimately ruled that only $5,187.00 of the IRS’s claim would be allowed. Both parties have submitted memoranda of law on the issues raised by the trustee’s motion.

For…