###### Editorial Note on Part 301

#### Editorial Note:

In the text of this part, integral section references are to sections of the Internal Revenue Code of 1954; decimal section references are to the Code of Federal Regulations.

References in the text to the “Code” are references to sections of the Internal Revenue Code of 1954.

#### § 301.7430-0 Table of contents.

This section lists the captions that appear in §§ 301.7430-1 through 301.7430-6.

## § 301.7430-1 Exhaustion of administrative remedies.

(a) In general.

(b) Requirements.

(1) In general.

(2) Participates.

(3) Tax matter.

(4) Failure to agree to extension of time for assessments.

(c) Revocation of a determination that an organization is described in section 501(c)(3).

(d) Actions involving summonses, levies, liens, jeopardy and termination assessments, etc.

(e) Exception to requirement that party pursue administrative remedies.

(f) Examples.

(g) Effective date.

## § 301.7430-2 Requirements and procedures for recovery of reasonable administrative costs.

(a) Introduction.

(b) Requirements for recovery.

(1) Determination by the Internal Revenue Service.

(i) Jurisdiction.

(ii) Administrative proceeding.

(iii) Administrative proceeding date.

(iv) Reasonable administrative costs.

(v) Prevailing party.

(vi) Not unreasonably protracted.

(vii) Procedural requirements.

(2) Determination by court.

(c) Procedure for recovering reasonable administrative costs.

(1) In general.

(2) Where request must be filed.

(3) Contents of request.

(i) Statements.

(ii) Affidavit or affidavits.

(iii) Documentation and information.

(4) Form of request.

(5) Period for requesting costs from the Internal Revenue Service.

(6) Notice.

(7) Appeal to Tax Court.

(d) Unreasonable protraction of administrative proceeding.

(e) Examples.

## § 301.7430-3 Administrative proceeding and administrative proceeding date.

(a) Administrative proceeding.

(b) Collection action.

(c) Administrative proceeding date.

(1) General rule.

(2) Notice of the decision of the Internal Revenue Service Office of Appeals.

(3) Notice of deficiency.

(4) First letter of proposed deficiency that allows the taxpayer an opportunity for administrative review in the Office of Appeals.

(d) Examples.

## § 301.7430-4 Reasonable administrative costs.

(a) In general.

(b) Costs described.

(1) In general.

(2) Representative and specially qualified representative.

(i) Representative.

(ii) Specially qualified representative.

(3) Limitation on fees for a representative.

(i) In general.

(ii) Cost of living adjustment.

(iii) Special factor adjustment.

(A) In general.

(B) Special factor.

(C) Limited availability.

(D) Local availability of tax expertise.

(E) Difficulty of the issues.

(F) Example.

(c) Certain costs excluded.

(1) Costs not incurred in an administrative proceeding.

(2) Costs incurred in an administrative proceeding but not reasonable.

(i) In general.

(ii) Special rule for expert witness' fees on issue of prevailing market rates.

(3) Litigation costs.

(4) Examples.

(d) Pro bono representation.

(1) In general.

(2) Requirements.

(3) Nominal fee.

(4) Payment when representation provided for a nominal fee.

(5) Requirements.

(6) Hourly rate.

(7) Examples.

## § 301.7430-5 Prevailing party.

(a) In general.

(b) Position of the Internal Revenue Service.

(c) Examples.

(d) Substantially justified.

(1) In general.

(2) Position in courts of appeal.

(3) Examples.

(4) Included costs.

(5) Examples.

(6) Exception.

(7) Presumption.

(e) Amount in controversy.

(f) Most significant issue or set of issues presented.

(1) In general.

(2) Example.

(g) Net worth and size limitations.

(1) Individuals.

(2) Estates and trusts.

(3) Others.

(4) Special rule for charitable organizations and certain cooperatives.

(5) Special rule for TEFRA partnerships.

(6) Determining net worth.

(h) Determination of prevailing party.

(i) Examples.

## § 301.7430-6 Effective/applicability dates.

## § 301.7430-7 Qualified offers.

(a) In general.

(b) Requirements for treatment as a prevailing party based upon having made a qualified offer.

(1) In general.

(2) Liability under the last qualified offer.

(3) Liability pursuant to the judgment.

(c) Qualified offer.

(1) In general.

(2) To the United States.

(3) Specifies the offered amount.

(4) Designated at the time it is made as a qualified offer.

(5) Remains open.

(6) Last qualified offer.

(7) Qualified offer period.

(8) Interest as a contested issue.

(d) [Reserved].

(e) Examples.

(f) Effective date.

## § 301.7430-8 Administrative costs incurred in damage actions for violations of section 362 or 524 of the Bankruptcy Code.

(a) In general.

(b) Prevailing party.

(c) Administrative proceeding.

(d) Costs incurred after filing of bankruptcy petition.

(e) Time for filing claim for administrative costs.

(f) Effective date.

[T.D. 8542, 59 FR 29360, June 7, 1994, as amended by T.D. 8725, 62 FR 39118, July 22, 1997; T.D. 9756, 81 FR 10483, Mar. 1, 2016]