Practice & Procedures
The Qualified Offer: The Taxpayer’s 90-Day Letter
1 Though the qualified offer provisions of Sec. 7430 took effect in early 1999, the Tax Court had issued only 13 opinions involving qualified offers as of March 6, 2008.
2 Sec. 7430(c)(4).
3 Sec. 7430(c)(4)(B)(i).
4 The qualified offer provisions adopted an additional method to be considered the prevailing party and did not replace the former method to obtain administrative and litigation costs. A taxpayer may still obtain relief under both methods.
5 Sec. 7430(c)(4)(E).
6 Internal Revenue Manual (IRM) Section 35.10.1.3(3).
7 Sec. 7430(g).
8 Regs. Sec. 301.7430-7(c)(2).
9 Sec. 7430(g)(2).
10 Regs. Sec. 301.7430-7(e), Example 12.
11 Id., Example 13.
12 Regs. Sec. 301.7430-7(c)(3).
13 Regs. Sec. 301.7430-7(e), Example 7.
14 Sec. 7430(c)(4)(A)(ii).
15 28 USC Section 2412(d)(2)(B)(i).
16 28 USC Section 2412(d)(2)(B)(ii). However, Sec. 501(c)(3) organizations and certain cooperatives are not subject to the net worth requirement.
17 Mason, TC Memo 1998-400; Buck, TC Memo 1993-16. These cases were decided prior to the enactment of the qualified offer provisions.
18 See Haas & Assocs. Accountancy Corp., 117 TC 48 (2001), aff’d, 55 FedAppx 476 (9th Cir. 2003).
19 Regs. Sec. 301.7430-1(b)(2).
20 Regs. Sec. 301.7430-1(b)(1)(i).
21 McGowan, TC Memo 2005-80.
22 Regs. Sec. 301.7430-1(b)(1).
23 IRM Section 8.7.1.10.2.
24 Sec. 7430(b)(1).
25 Regs. Sec. 301.7430-1(g), Example 4.
26 Regs. Sec. 301.7430-1(f)(2).
27 Sec. 7430(c)(4)(E)(ii)(I).
28 Gladden, 120 TC 446 (2003).
29 Regs. Sec. 301.7430-7(b)(1).
30 Lippitz, TC Memo 2007-293.
31 Sec. 7430(c)(4)(E)(ii)(II).
32 Sec. 7430(a).
33 Sec. 7430(c)(4)(E)(iii).
34 Sec. 7430(c)(1)(B)(iii); Rev. Proc. 2007-66, §3.39, 2007-45 IRB 970.
35 IRM Section 35.10.1.3.1(4).