Mearkle v. Commissioner
United States Tax Court
In our earlier opinion (87 T.C. 527 (1986)), we denied petitioners' motion for litigation costs under sec. 7430, I.R.C. 1954, holding that respondent was not unreasonable in basing his determination on a proposed regulation that was subsequently determined by this Court to be inconsistent with the statute. The Court of Appeals reversed, holding that respondent's position in the litigation was unreasonable, and remanded the case for further proceedings.
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In our earlier opinion (87 T.C. 527 (1986)), we denied petitioners' motion for litigation costs under sec. 7430, I.R.C. 1954, holding that respondent was not unreasonable in basing his determination on a proposed regulation that was subsequently determined by this Court to be inconsistent with the statute. The Court of Appeals reversed, holding that respondent's position in the litigation was unreasonable, and remanded the case for further proceedings. Held, petitioners unreasonably protracted this proceeding by refusing to accept a full concession by respondent 4 months before trial, and…
1Opinion of the Court
SUPPLEMENTAL OPINION
PARR, Judge:
This case is now before us on remand from the Court of Appeals for the Sixth Circuit.1 In our earlier opinion (87 T.C. 527 (1986)), we held that petitioners were not entitled to litigation costs under section 7430.2 Although petitioners had substantially prevailed as to the issue and the amount in controversy, and had exhausted their administrative remedies, we held that the position of the United States was not unreasonable, and therefore petitioners were not “prevailing parties” to whom litigation costs could be awarded under section 7430.3
By notice of…
2Cases cited4 opinions
- Scott v. CommissionerUnited States Tax Court · 1985
- Martin v. CommissionerUnited States Tax Court · 1988
- Mearkle v. CommissionerUnited States Tax Court · 1986
- Russell R. & Virginia R. Mearkle v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1988
3Cited by11 opinions
- Cassuto v. CommissionerUnited States Tax Court · 1989
- Nalle v. CommissionerUnited States Tax Court · 1994
- Ragan v. CommissionerCourt of Appeals for the Fifth Circuit · 1998
- Dixon v. Comm'rUnited States Tax Court · 2006
- Tinsley v. CommissionerUnited States Tax Court · 1992
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