
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[CITE: 26USC7430]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
        Subchapter B--Proceedings by Taxpayers and Third Parties
 
Sec. 7430. Awarding of costs and certain fees


(a) In general

    In any administrative or court proceeding which is brought by or 
against the United States in connection with the determination, 
collection, or refund of any tax, interest, or penalty under this title, 
the prevailing party may be awarded a judgment or a settlement for--
        (1) reasonable administrative costs incurred in connection with 
    such administrative proceeding within the Internal Revenue Service, 
    and
        (2) reasonable litigation costs incurred in connection with such 
    court proceeding.

(b) Limitations

      (1) Requirement that administrative remedies be exhausted

        A judgment for reasonable litigation costs shall not be awarded 
    under subsection (a) in any court proceeding unless the court 
    determines that the prevailing party has exhausted the 
    administrative remedies available to such party within the Internal 
    Revenue Service. Any failure to agree to an extension of the time 
    for the assessment of any tax shall not be taken into account for 
    purposes of determining whether the prevailing party meets the 
    requirements of the preceding sentence.

            (2) Only costs allocable to the United States

        An award under subsection (a) shall be made only for reasonable 
    litigation and administrative costs which are allocable to the 
    United States and not to any other party.

         (3) Costs denied where party prevailing protracts 
                                 proceedings

        No award for reasonable litigation and administrative costs may 
    be made under subsection (a) with respect to any portion of the 
    administrative or court proceeding during which the prevailing party 
    has unreasonably protracted such proceeding.

       (4) Period for applying to IRS for administrative costs

        An award may be made under subsection (a) by the Internal 
    Revenue Service for reasonable administrative costs only if the 
    prevailing party files an application with the Internal Revenue 
    Service for such costs before the 91st day after the date on which 
    the final decision of the Internal Revenue Service as to the 
    determination of the tax, interest, or penalty is mailed to such 
    party.

(c) Definitions

    For purposes of this section--

                   (1) Reasonable litigation costs

        The term ``reasonable litigation costs'' includes--
            (A) reasonable court costs, and
            (B) based upon prevailing market rates for the kind or 
        quality of services furnished--
                (i) the reasonable expenses of expert witnesses in 
            connection with a court proceeding, except that no expert 
            witness shall be compensated at a rate in excess of the 
            highest rate of compensation for expert witnesses paid by 
            the United States,
                (ii) the reasonable cost of any study, analysis, 
            engineering report, test, or project which is found by the 
            court to be necessary for the preparation of the party's 
            case, and
                (iii) reasonable fees paid or incurred for the services 
            of attorneys in connection with the court proceeding, except 
            that such fees shall not be in excess of $125 per hour 
            unless the court determines that a special factor, such as 
            the limited availability of qualified attorneys for such 
            proceeding, the difficulty of the issues presented in the 
            case, or the local availability of tax expertise, justifies 
            a higher rate.

    In the case of any calendar year beginning after 1996, the dollar 
    amount referred to in clause (iii) shall be increased by an amount 
    equal to such dollar amount multiplied by the cost-of-living 
    adjustment determined under section 1(f)(3) for such calendar year, 
    by substituting ``calendar year 1995'' for ``calendar year 1992'' in 
    subparagraph (B) thereof. If any dollar amount after being increased 
    under the preceding sentence is not a multiple of $10, such dollar 
    amount shall be rounded to the nearest multiple of $10.

                 (2) Reasonable administrative costs

        The term ``reasonable administrative costs'' means--
            (A) any administrative fees or similar charges imposed by 
        the Internal Revenue Service, and
            (B) expenses, costs, and fees described in paragraph (1)(B), 
        except that any determination made by the court under clause 
        (ii) or (iii) thereof shall be made by the Internal Revenue 
        Service in cases where the determination under paragraph (4)(C) 
        of the awarding of reasonable administrative costs is made by 
        the Internal Revenue Service.

    Such term shall only include costs incurred on or after whichever of 
    the following is the earliest: (i) the date of the receipt by the 
    taxpayer of the notice of the decision of the Internal Revenue 
    Service Office of Appeals; (ii) the date of the notice of 
    deficiency; or (iii) the date on which the first letter of proposed 
    deficiency which allows the taxpayer an opportunity for 
    administrative review in the Internal Revenue Service Office of 
    Appeals is sent.

                         (3) Attorneys' fees

        (A) In general

            For purposes of paragraphs (1) and (2), fees for the 
        services of an individual (whether or not an attorney) who is 
        authorized to practice before the Tax Court or before the 
        Internal Revenue Service shall be treated as fees for the 
        services of an attorney.

        (B) Pro bono services

            The court may award reasonable attorneys' fees under 
        subsection (a) in excess of the attorneys' fees paid or incurred 
        if such fees are less than the reasonable attorneys' fees 
        because an individual is representing the prevailing party for 
        no fee or for a fee which (taking into account all the facts and 
        circumstances) is no more than a nominal fee. This subparagraph 
        shall apply only if such award is paid to such individual or 
        such individual's employer.

                        (4) Prevailing party

        (A) In general

            The term ``prevailing party'' means any party in any 
        proceeding to which subsection (a) applies (other than the 
        United States or any creditor of the taxpayer involved)--
                (i) which--
                    (I) has substantially prevailed with respect to the 
                amount in controversy, or
                    (II) has substantially prevailed with respect to the 
                most significant issue or set of issues presented, and

                (ii) which meets the requirements of the 1st sentence of 
            section 2412(d)(1)(B) of title 28, United States Code (as in 
            effect on October 22, 1986) except to the extent differing 
            procedures are established by rule of court and meets the 
            requirements of section 2412(d)(2)(B) of such title 28 (as 
            so in effect).

        (B) Exception if United States establishes that its position was 
                substantially justified

            (i) General rule

                A party shall not be treated as the prevailing party in 
            a proceeding to which subsection (a) applies if the United 
            States establishes that the position of the United States in 
            the proceeding was substantially justified.
            (ii) Presumption of no justification if Internal 
                    Revenue Service did not follow certain 
                    published guidance

                For purposes of clause (i), the position of the United 
            States shall be presumed not to be substantially justified 
            if the Internal Revenue Service did not follow its 
            applicable published guidance in the administrative 
            proceeding. Such presumption may be rebutted.
            (iii) Effect of losing on substantially similar 
                    issues

                In determining for purposes of clause (i) whether the 
            position of the United States was substantially justified, 
            the court shall take into account whether the United States 
            has lost in courts of appeal for other circuits on 
            substantially similar issues.
            (iv) Applicable published guidance

                For purposes of clause (ii), the term ``applicable 
            published guidance'' means--
                    (I) regulations, revenue rulings, revenue 
                procedures, information releases, notices, and 
                announcements, and
                    (II) any of the following which are issued to the 
                taxpayer: private letter rulings, technical advice 
                memoranda, and determination letters.

        (C) Determination as to prevailing party

            Any determination under this paragraph as to whether a party 
        is a prevailing party shall be made by agreement of the parties 
        or--
                (i) in the case where the final determination with 
            respect to the tax, interest, or penalty is made at the 
            administrative level, by the Internal Revenue Service, or
                (ii) in the case where such final determination is made 
            by a court, the court.

        (D) Special rules for applying net worth requirement

            In applying the requirements of section 2412(d)(2)(B) of 
        title 28, United States Code, for purposes of subparagraph 
        (A)(ii) of this paragraph--
                (i) the net worth limitation in clause (i) of such 
            section shall apply to--
                    (I) an estate but shall be determined as of the date 
                of the decedent's death, and
                    (II) a trust but shall be determined as of the last 
                day of the taxable year involved in the proceeding, and

                (ii) individuals filing a joint return shall be treated 
            as separate individuals for purposes of clause (i) of such 
            section.

        (E) Special rules where judgment less than taxpayer's offer

            (i) In general

                A party to a court proceeding meeting the requirements 
            of subparagraph (A)(ii) shall be treated as the prevailing 
            party if the liability of the taxpayer pursuant to the 
            judgment in the proceeding (determined without regard to 
            interest) is equal to or less than the liability of the 
            taxpayer which would have been so determined if the United 
            States had accepted a qualified offer of the party under 
            subsection (g).
            (ii) Exceptions

                This subparagraph shall not apply to--
                    (I) any judgment issued pursuant to a settlement; or
                    (II) any proceeding in which the amount of tax 
                liability is not in issue, including any declaratory 
                judgment proceeding, any proceeding to enforce or quash 
                any summons issued pursuant to this title, and any 
                action to restrain disclosure under section 6110(f).
            (iii) Special rules

                If this subparagraph applies to any court proceeding--
                    (I) the determination under clause (i) shall be made 
                by reference to the last qualified offer made with 
                respect to the tax liability at issue in the proceeding; 
                and
                    (II) reasonable administrative and litigation costs 
                shall only include costs incurred on and after the date 
                of such offer.
            (iv) Coordination

                This subparagraph shall not apply to a party which is a 
            prevailing party under any other provision of this 
            paragraph.

                   (5) Administrative proceedings

        The term ``administrative proceeding'' means any procedure or 
    other action before the Internal Revenue Service.

                        (6) Court proceedings

        The term ``court proceeding'' means any civil action brought in 
    a court of the United States (including the Tax Court and the United 
    States Court of Federal Claims).

                    (7) Position of United States

        The term ``position of the United States'' means--
            (A) the position taken by the United States in a judicial 
        proceeding to which subsection (a) applies, and
            (B) the position taken in an administrative proceeding to 
        which subsection (a) applies as of the earlier of--
                (i) the date of the receipt by the taxpayer of the 
            notice of the decision of the Internal Revenue Service 
            Office of Appeals, or
                (ii) the date of the notice of deficiency.

(d) Special rules for payment of costs

                 (1) Reasonable administrative costs

        An award for reasonable administrative costs shall be payable 
    out of funds appropriated under section 1304 of title 31, United 
    States Code.

                   (2) Reasonable litigation costs

        An award for reasonable litigation costs shall be payable in the 
    case of the Tax Court in the same manner as such an award by a 
    district court.

(e) Multiple actions

    For purposes of this section, in the case of--
        (1) multiple actions which could have been joined or 
    consolidated, or
        (2) a case or cases involving a return or returns of the same 
    taxpayer (including joint returns of married individuals) which 
    could have been joined in a single court proceeding in the same 
    court,

such actions or cases shall be treated as 1 court proceeding regardless 
of whether such joinder or consolidation actually occurs, unless the 
court in which such action is brought determines, in its discretion, 
that it would be inappropriate to treat such actions or cases as joined 
or consolidated.

(f) Right of appeal

                        (1) Court proceedings

        An order granting or denying (in whole or in part) an award for 
    reasonable litigation or administrative costs under subsection (a) 
    in a court proceeding, may be incorporated as a part of the decision 
    or judgment in the court proceeding and shall be subject to appeal 
    in the same manner as the decision or judgment.

                   (2) Administrative proceedings

        A decision granting or denying (in whole or in part) an award 
    for reasonable administrative costs under subsection (a) by the 
    Internal Revenue Service shall be subject to the filing of a 
    petition for review with the Tax Court under rules similar to the 
    rules under section 7463 (without regard to the amount in dispute). 
    If the Secretary sends by certified or registered mail a notice of 
    such decision to the petitioner, no proceeding in the Tax Court may 
    be initiated under this paragraph unless such petition is filed 
    before the 91st day after the date of such mailing.

                  (3) Appeal of Tax Court decision

        An order of the Tax Court disposing of a petition under 
    paragraph (2) shall be reviewable in the same manner as a decision 
    of the Tax Court, but only with respect to the matters determined in 
    such order.

(g) Qualified offer

    For purposes of subsection (c)(4)--

                           (1) In general

        The term ``qualified offer'' means a written offer which--
            (A) is made by the taxpayer to the United States during the 
        qualified offer period;
            (B) specifies the offered amount of the taxpayer's liability 
        (determined without regard to interest);
            (C) is designated at the time it is made as a qualified 
        offer for purposes of this section; and
            (D) remains open during the period beginning on the date it 
        is made and ending on the earliest of the date the offer is 
        rejected, the date the trial begins, or the 90th day after the 
        date the offer is made.

                     (2) Qualified offer period

        For purposes of this subsection, the term ``qualified offer 
    period'' means the period--
            (A) beginning on the date on which the first letter of 
        proposed deficiency which allows the taxpayer an opportunity for 
        administrative review in the Internal Revenue Service Office of 
        Appeals is sent, and
            (B) ending on the date which is 30 days before the date the 
        case is first set for trial.

(Added Pub. L. 97-248, title II, Sec. 292(a), Sept. 3, 1982, 96 Stat. 
572; amended Pub. L. 98-369, div. A, title VII, Sec. 714(c), July 18, 
1984, 98 Stat. 961; Pub. L. 99-514, title XV, Sec. 1551(a)-(g), Oct. 22, 
1986, 100 Stat. 2752, 2753; Pub. L. 100-647, title I, Sec. 1015(i), 
title VI, Sec. 6239(a), Nov. 10, 1988, 102 Stat. 3571, 3743; Pub. L. 
102-572, title IX, Sec. 902(b)(1), Oct. 29, 1992, 106 Stat. 4516; Pub. 
L. 104-168, title VII, Secs. 701(a)-(c)(2), 702(a), 703(a), 704(a), July 
30, 1996, 110 Stat. 1463, 1464; Pub. L. 105-34, title XII, Sec. 1285(a)-
(c), title XIV, Sec. 1453(a), Aug. 5, 1997, 111 Stat. 1038, 1055; Pub. 
L. 105-206, title III, Sec. 3101(a)-(e), title VI, Secs. 6012(h), 
6014(e), July 22, 1998, 112 Stat. 727, 728, 819, 820; Pub. L. 106-554, 
Sec. 1(a)(7) [title III, Sec. 319(25)], Dec. 21, 2000, 114 Stat. 2763, 
2763A-647.)

 Adjustment of Hourly Limit on Attorney Fees Awarded for Calendar Year 
                                  2001

        For adjustment of the hourly limit on attorney fees awarded 
    under this section for calendar year 2001, see section 3.26 of 
    Revenue Procedure 2001-13, set out as a note under section 1 of this 
    title.


                            Prior Provisions

    A prior section 7430 was renumbered section 7437 of this title.


                               Amendments

    2000--Subsec. (c)(3). Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 319(25)(A)], substituted ``Attorneys' '' for ``Attorneys'' in 
heading.
    Subsec. (c)(3)(B). Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 319(25)(B)], substituted ``attorneys' fees'' for ``attorneys fees'' 
wherever appearing.
    1998--Subsec. (b)(4), (5). Pub. L. 105-206, Sec. 6012(h), 
redesignated par. (5) as (4).
    Subsec. (c)(1)(B)(iii). Pub. L. 105-206, Sec. 3101(a), substituted 
``$125'' for ``$110'' and inserted ``the difficulty of the issues 
presented in the case, or the local availability of tax expertise,'' 
before ``justifies a higher rate''.
    Subsec. (c)(2). Pub. L. 105-206, Sec. 3101(b), added concluding 
provisions and struck out former concluding provisions which read as 
follows: ``Such term shall only include costs incurred on or after the 
earlier of (i) the date of the receipt by the taxpayer of the notice of 
the decision of the Internal Revenue Service Office of Appeals, or (ii) 
the date of the notice of deficiency.''
    Subsec. (c)(3). Pub. L. 105-206, Sec. 3101(c), substituted 
``attorneys'' for ``attorney's'' in heading and amended text of par. (3) 
generally. Prior to amendment, text read as follows: ``For purposes of 
paragraphs (1) and (2), fees for the services of an individual (whether 
or not an attorney) who is authorized to practice before the Tax Court 
or before the Internal Revenue Service shall be treated as fees for the 
services of an attorney.''
    Subsec. (c)(4)(B)(iii), (iv). Pub. L. 105-206, Sec. 3101(d), added 
cl. (iii) and redesignated former cl. (iii) as (iv).
    Subsec. (c)(4)(D). Pub. L. 105-206, Sec. 6014(e), substituted 
``subparagraph (A)(ii)'' for ``subparagraph (A)(iii)'' in introductory 
provisions.
    Subsec. (c)(4)(E). Pub. L. 105-206, Sec. 3101(e)(1), added subpar. 
(E).
    Subsec. (g). Pub. L. 105-206, Sec. 3101(e)(2), added subsec. (g).
    1997--Subsec. (b)(5). Pub. L. 105-34, Sec. 1285(b), added par. (5).
    Subsec. (c)(4)(D). Pub. L. 105-34, Sec. 1453(a), added subpar. (D).
    Subsec. (f)(2). Pub. L. 105-34, Sec. 1285(c), substituted ``the 
filing of a petition for review with'' for ``appeal to'' and inserted at 
end ``If the Secretary sends by certified or registered mail a notice of 
such decision to the petitioner, no proceeding in the Tax Court may be 
initiated under this paragraph unless such petition is filed before the 
91st day after the date of such mailing.''
    Subsec. (f)(3). Pub. L. 105-34, Sec. 1285(a), added par. (3).
    1996--Subsec. (b)(1). Pub. L. 104-168, Sec. 703(a), inserted at end 
``Any failure to agree to an extension of the time for the assessment of 
any tax shall not be taken into account for purposes of determining 
whether the prevailing party meets the requirements of the preceding 
sentence.''
    Subsec. (b)(3), (4). Pub. L. 104-168, Sec. 704(a), redesignated par. 
(4) as (3) and struck out former par. (3) which read as follows:
    ``(3) Exclusion of declaratory judgment proceedings.--
        ``(A) In general.--No award for reasonable litigation costs may 
    be made under subsection (a) with respect to any declaratory 
    judgment proceeding.
        ``(B) Exception for section 501(c)(3) determination revocation 
    proceedings.--Subparagraph (A) shall not apply to any proceeding 
    which involves the revocation of a determination that the 
    organization is described in section 501(c)(3).''
    Subsec. (c)(1). Pub. L. 104-168, Sec. 702(a)(3), inserted closing 
provisions ``In the case of any calendar year beginning after 1996, the 
dollar amount referred to in clause (iii) shall be increased by an 
amount equal to such dollar amount multiplied by the cost-of-living 
adjustment determined under section 1(f)(3) for such calendar year, by 
substituting `calendar year 1995' for `calendar year 1992' in 
subparagraph (B) thereof. If any dollar amount after being increased 
under the preceding sentence is not a multiple of $10, such dollar 
amount shall be rounded to the nearest multiple of $10.''
    Subsec. (c)(1)(B)(iii). Pub. L. 104-168, Sec. 702(a)(1), (2), 
substituted ``$110'' for ``$75'' and struck out ``an increase in the 
cost of living or'' before ``a special factor,''.
    Subsec. (c)(2)(B). Pub. L. 104-168, Sec. 701(c)(1), substituted 
``paragraph (4)(C)'' for ``paragraph (4)(B)''.
    Subsec. (c)(4)(A). Pub. L. 104-168, Sec. 701(a), redesignated cls. 
(ii) and (iii) as (i) and (ii), respectively, and struck out former cl. 
(i) which read as follows: ``which establishes that the position of the 
United States in the proceeding was not substantially justified,''.
    Subsec. (c)(4)(B). Pub. L. 104-168, Sec. 701(b), added subpar. (B). 
Former subpar. (B) redesignated (C).
    Subsec. (c)(4)(C). Pub. L. 104-168, Sec. 701(c)(2), substituted 
``Any determination under this paragraph'' for ``Any determination under 
subparagraph (A)''.
    Pub. L. 104-168, Sec. 701(b), redesignated subpar. (B) as (C).
    1992--Subsec. (c)(6). Pub. L. 102-572 substituted ``United States 
Court of Federal Claims'' for ``United States Claims Court''.
    1988--Pub. L. 100-647, Sec. 6239(a), substituted ``costs'' for 
``court costs'' in section catchline and amended text generally, 
revising and restating provisions so as to include costs and fees in 
administrative proceedings.
    Subsec. (c)(2)(A)(iii). Pub. L. 100-647, Sec. 1015(i), amended cl. 
(iii) generally. Prior to amendment, cl. (iii) read as follows: ``meets 
the requirements of section 504(b)(1)(B) of title 5, United States Code 
(as in effect on the date of the enactment of the Tax Reform Act of 1986 
and applied by taking into account the commencement of the proceeding 
described in subsection (a) in lieu of the initiation of the 
adjudication referred to in such section).''
    1986--Subsec. (a). Pub. L. 99-514, Sec. 1551(f), inserted ``(payable 
in the case of the Tax Court in the same manner as such an award by a 
district court)'' in concluding provisions.
    Subsec. (b). Pub. L. 99-514, Sec. 1551(a), (b), redesignated pars. 
(2) to (4) as (1) to (3), respectively, added par. (4), and struck out 
former par. (1), maximum dollar amount, which read as follows: ``The 
amount of reasonable litigation costs which may be awarded under 
subsection (a) with respect to any prevailing party in any civil 
proceeding shall not exceed $25,000.''
    Subsec. (c)(1)(A). Pub. L. 99-514, Sec. 1551(c), amended subpar. (A) 
generally. Prior to amendment, subpar. (A) read as follows: ``The term 
`reasonable litigation costs' includes--
        ``(i) reasonable court costs,
        ``(ii) the reasonable expenses of expert witnesses in connection 
    with the civil proceeding,
        ``(iii) the reasonable cost of any study, analysis, engineering 
    report, test, or project which is found by the court to be necessary 
    for the preparation of the party's case, and
        ``(iv) reasonable fees paid or incurred for the services of 
    attorneys in connection with the civil proceeding.''
    Subsec. (c)(2)(A). Pub. L. 99-514, Sec. 1551(d), substituted ``was 
not substantially justified'' for ``was unreasonable'' in cl. (i), and 
added cl. (iii).
    Subsec. (c)(4). Pub. L. 99-514, Sec. 1551(e), added par. (4).
    Subsec. (f). Pub. L. 99-514, Sec. 1551(g), struck out subsec. (f), 
termination, which read as follows: ``This section shall not apply to 
any proceeding commenced after December 31, 1985.''
    1984--Subsec. (a)(2). Pub. L. 98-369 inserted reference to United 
States Claims Court.


                    Effective Date of 1998 Amendment

    Pub. L. 105-206, title III, Sec. 3101(g), July 22, 1998, 112 Stat. 
729, provided that: ``The amendments made by this section [amending this 
section and section 7431 of this title] shall apply to costs incurred 
(and, in the case of the amendment made by subsection (c) [amending this 
section], services performed) more than 180 days after the date of the 
enactment of this Act [July 22, 1998].''
    Amendment by sections 6012(h) and 6014(e) of Pub. L. 105-206 
effective, except as otherwise provided, as if included in the 
provisions of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which 
such amendment relates, see section 6024 of Pub. L. 105-206, set out as 
a note under section 1 of this title.


                    Effective Date of 1997 Amendment

    Section 1285(d) of Pub. L. 105-34 provided that: ``The amendments 
made by this section [amending this section] shall apply to civil 
actions or proceedings commenced after the date of the enactment of this 
Act [Aug. 5, 1997].''
    Section 1453(b) of Pub. L. 105-34 provided that: ``The amendment 
made by this section [amending this section] shall apply to proceedings 
commenced after the date of the enactment of this Act [Aug. 5, 1997].''


                    Effective Date of 1996 Amendment

    Amendment by section 701(a)-(c)(2) of Pub. L. 104-168 applicable in 
case of proceedings commenced after July 30, 1996, see section 701(d) of 
Pub. L. 104-168, set out as a note under section 6404 of this title.
    Section 702(b) of Pub. L. 104-168 provided that: ``The amendment 
made by this section [amending this section] shall apply in the case of 
proceedings commenced after the date of the enactment of this Act [July 
30, 1996].''
    Section 703(b) of Pub. L. 104-168 provided that: ``The amendment 
made by this section [amending this section] shall apply in the case of 
proceedings commenced after the date of the enactment of this Act [July 
30, 1996].''
    Section 704(b) of Pub. L. 104-168 provided that: ``The amendment 
made by this section [amending this section] shall apply in the case of 
proceedings commenced after the date of the enactment of this Act [July 
30, 1996].''


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section 
911 of Pub. L. 102-572, set out as a note under section 171 of Title 28, 
Judiciary and Judicial Procedure.


                    Effective Date of 1988 Amendment

    Amendment by section 1015(i) of Pub. L. 100-647 effective, except as 
otherwise provided, as if included in the provision of the Tax Reform 
Act of 1986, Pub. L. 99-514, to which such amendment relates, see 
section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of 
this title.
    Section 6239(d) of Pub. L. 100-647 provided that: ``The amendments 
made by this section [amending this section and section 504 of Title 5, 
Government Organization and Employees] shall apply to proceedings 
commencing after the date of the enactment of this Act [Nov. 10, 
1988].''


                    Effective Date of 1986 Amendment

    Section 1551(h) of Pub. L. 99-514 provided that:
    ``(1) General rule.--Except as provided in paragraph (2), the 
amendments made by this section [amending this section] shall apply to 
amounts paid after September 30, 1986, in civil actions or proceedings, 
commenced after December 31, 1985.
    ``(2) Subsection (f).--The amendment made by subsection (f) 
[amending this section] shall take effect as if included in the 
amendments made by section 292 of the Tax Equity and Fiscal 
Responsibility Act of 1982 [see Effective Date note below].
    ``(3) Applicability of amendments to certain prior cases.--The 
amendments made by this section shall apply to any case commenced after 
December 31, 1985, and finally disposed of before the date of the 
enactment of this Act [Oct. 22, 1986], except that in any such case, the 
30-day period referred to in section 2412(d)(1)(B) of title 28, United 
States Code, or Rule 231 of the Tax Court [26 App. U.S.C. Rule 231], as 
the case may be, shall be deemed to commence on the date of the 
enactment of this Act [Oct. 22, 1986].''


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective as if included in the 
provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. 
L. 97-248, to which such amendment relates, see section 715 of Pub. L. 
98-369, set out as a note under section 31 of this title.


                             Effective Date

    Section 292(e) of Pub. L. 97-248, as amended by Pub. L. 98-369, div. 
A, title I, Sec. 160, July 18, 1984, 98 Stat. 696, provided that:
    ``(1) In general.--The amendments made by this section [enacting 
this section and amending section 6673 of this title and section 2412 of 
Title 28, Judiciary and Judicial Procedure] shall apply to civil actions 
or proceedings commenced after February 28, 1983.
    ``(2) Penalty.--The amendments made by subsections (b) and (d)(2) 
[amending section 6673 of this title] shall apply to any action or 
proceeding in the United States Tax Court which--
        ``(A) is commenced after December 31, 1982, or
        ``(B) is pending in the United States Tax Court on the day which 
    is 120 days after the date of the enactment of the Tax Reform Act of 
    1984 [July 18, 1984].''

                  Section Referred to in Other Sections

    This section is referred to in sections 6404, 6512, 6656, 7431, 
7433, 7436, 7491, 7611 of this title; title 5 section 504; title 28 
section 2412.
