Ramon Portillo and Dolores Portillo v. Commissioner of Internal Revenue

HAIK, District Judge:

Ramon and Dolores Portillo appeal an order of the Tax Court denying them litigation costs. A previous panel of this Court reversed the Tax Court’s decision in part, affirmed in part, and remanded for recalculation. Portillo v. C.I.R., 932 F.2d 1128 (5th Cir.1991). We find that the Tax Court abused its discretion in denying costs. We reverse, remand to the Tax Court for a determination of reasonable attorney fees and litigation costs, and deny sanctions.

The petitioners seek to have their litigation costs reimbursed as provided in 26 U.S.C. 7430. Recovery of litigation…