Attorney Cannot File Petition to Recover Administrative Costs under Section 7430

By on November 22, 2016

In Greenberg v. Commissioner, 147 T.C. No. 13 (2016), an attorney sought the award of administrative costs (i.e., his attorney’s fees) for an earlier administrative proceeding in which he represented a taxpayer before the Internal Revenue Service. The attorney was owed fees for his representation of the taxpayer that remained outstanding, and the taxpayer agreed that the attorney would receive any administrative fees awarded under Internal Revenue Code Section 7430. The US Tax Court, however, held that because the attorney was not a party to the underlying administrative proceeding, the attorney could not be a “prevailing party,” which was required for an award of administrative costs under Section 7430. As such, the attorney was not the proper party to file a petition for fees under Section 7430, and thus, the court dismissed the case for lack of subject matter jurisdiction.

Kristina Novak
Kristina L. Novak, PC focuses her practice on defending individuals and businesses in all stages of federal civil and criminal tax controversies, including litigation, US Internal Revenue Service (IRS) examinations and administrative appeals. In addition, she has advised clients on tax-related aspects of public and private mergers and acquisitions, cross-border and private equity fund investments, and bankruptcies and restructurings of financially troubled companies. Kristina also has experience in estate planning and administration, and estate and trust taxation. Read Kristina Novak's full bio.

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