United States Tax Court
Rules
TITLE XXVI
ACTIONS FOR ADMINISTRATIVE COSTS
Rule 270. General
(a) Applicability. The Rules of this Title XXVI set forth the
special provisions which apply to actions for administrative
costs under Code Section 7430(f)(2). Except as otherwise provided
in this Title, the other Rules of Practice and Procedure of the
Court, to the extent pertinent, are applicable to such actions
for administrative costs.
(b) Definitions. As used in the Rules in this Title--
(1) "Reasonable administrative costs" means the items
described in Code Section 7430(c)(2).
(2) "Attorney's fees" include fees paid or incurred for the
services of an individual (whether or not an attorney) admitted
to practice before the Court or authorized to practice before the
Internal Revenue Service. For the procedure for admission to
practice before the Court, see Rule 200.
(3) "Administrative proceeding" means any procedure or other
action before the Internal Revenue Service.
(c) Jurisdictional requirements. The Court does not have
jurisdiction of an action for administrative costs under this
Title unless the following conditions are satisfied:
(1) The Commissioner has made a decision denying (in whole or
in part) an award for reasonable administrative costs under Code
Section 7430(a).
(2) A petition for an award for reasonable administrative
costs is filed with the Court.
Rule 271. Commencement of Action for Administrative
Costs
(a) Commencement of action. An action for an award for
reasonable administrative costs under Code Section 7430(f)(2)
shall be commenced by filing a petition with the Court. See Rule
20, relating to commencement of case; Rule 22, relating to the
place and manner of filing the petition; and Rule 32, relating to
the form of pleadings.
(b) Content of petition. A petition filed pursuant to this
Rule shall be entitled "Petition for Administrative Costs (Sec.
7430(f)(2))." Such a petition shall be substantially in
accordance with Form 16 shown in Appendix I, or shall, in the
alternative, contain the following:
(1) In the case of a petitioner other than a corporation, the
petitioner's name and legal residence; in the case of a corporate
petitioner, the petitioner's name and principal place of business
or principal office or agency; and, in all cases, the
petitioner's mailing address and identification number (e.g.,
Social Security number or employer identification number). The
mailing address, legal residence, and principal place of
business, or principal office or agency, shall be stated as of
the date that the petition is filed.
(2) The date of the decision denying an award for
administrative costs in respect of which the petition is filed,
and the City and State of the office of the Internal Revenue
Service which issued the decision.
(3) The amount of administrative costs claimed by the
petitioner in the administrative proceeding; the amount of
administrative costs denied by the Commissioner; and, if
different from the amount denied, the amount of administrative
costs now claimed by the petitioner.
(4) Clear and concise lettered statements of the facts on
which the petitioner relies to establish that, in the
administrative proceeding, the petitioner substantially prevailed
and the Commissioner's position was not substantially justified.
(5) A statement that the petitioner meets the net worth
requirements of Section 2412(d)(2)(B) of Title 28, United States
Code (as in effect on October 22, 1986).
(6) The signature, mailing address, and telephone number of
each petitioner or each petitioner's counsel, as well as
counsel's Tax Court bar number.
(7) A copy of the decision denying (in whole or in part) an
award for reasonable administrative costs in respect of which the
petition is filed.
(c) Filing fee. The fee for filing a petition for
administrative costs shall be $ 60, payable at the time of
filing. The payment of any fee under this paragraph may be waived
if the petitioner establishes to the satisfaction of the Court by
an affidavit containing specific financial information that the
petitioner is unable to make such payment.
Rule 272. Other Pleadings
(a) Answer.
(1) In general. The Commissioner shall file an answer or shall
move with respect to the petition within the periods specified in
and in accordance with the provisions of Rule 36.
(2) Additional requirement for answer. In addition to the
specific admission or denial of each material allegation in the
petition, the answer shall specifically state:
(A) Whether the Commissioner agrees that the petitioner
substantially prevailed in the administrative proceeding;
(B) Whether the Commissioner agrees that the position of the
Commissioner in the administrative proceeding was not
substantially justified;
(C) Whether the Commissioner agrees that the amount of
administrative costs claimed by the petitioner is reasonable;
(D) Whether the Commissioner agrees that the petitioner meets
the net worth requirements as provided by law; and
(E) The basis for the Commissioner's disagreement with any
such allegations by the petitioner.
(3) Effect of answer. Every material allegation set forth in
the petition and not expressly admitted or denied in the answer
shall be deemed to be admitted. The failure to include in the
answer any statement required by subparagraph (2) of this
paragraph shall be deemed to constitute a concession by the
Commissioner of that matter.
(b) Reply. A reply to the answer shall not be filed in an
action for administrative costs unless the Court, on its own
motion or upon motion of the Commissioner, shall otherwise
direct. Any reply shall conform to the requirements of Rule
37(b). In the absence of a requirement of a reply, the provisions
of the second sentence of Rule 37(c) shall not apply and the
material allegations of the answer will be deemed denied.
Rule 273. Joinder of Issue in Action for Administrative
Costs
An action for administrative costs shall be deemed at issue
upon the filing of the answer.
Rule 274. Applicable Small Tax Case Rules
Proceedings in an action for administrative costs shall be
governed by the provisions of the following Small Tax Case Rules
(see Rule 170) with respect to the matters to which they apply:
Rule 174 (representation); Rule 176 (preliminary hearings); Rule
177 (trial); Rule 178 (transcript of proceedings); and Rule 179
(number of copies of papers).
