In Israel Mikel v. Commissioner, T.C. Memo 2015-64, the Tax Court denied the taxpayer’s request for an award of litigation costs after it was granted summary judgment in a gift tax dispute with the IRS, finding that the IRS’s position was substantially justified based on in terrorem provisions in a trust document.  Therefore, the taxpayer was not a prevailing party under Code Sec. 7430(c)(4)(A).

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.