Recovering Attorney's Fees and Litigation Costs

By Megan L. Brackney
Journal of Passthrough Entities
September - October 2014 Edition

Code Sec. 7430 permits an award of reasonable litigation and administrative costs incurred by the “prevailing party” in an administrative or court proceeding brought by or against the United States in connection with the determination, collection or refund of any tax, interest or penalty under the Code. 1 Although most of the Code Sec. 7430 requirements apply similarly to all taxpayers, there are some issues that are more complicated for TEFRA partnerships, 2 such as determining the net worth limitations and identifying the party that actually incurred the litigation or administrative costs. Th is column discusses the general requirements and procedures for obtaining an award under Code Sec. 7430 , some special considerations for TEFRA partnerships and other remedies that may be available against the government. 

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