Page:United States Statutes at Large Volume 100 Part 3.djvu/945

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2753

"(iii) 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)." (e)

POSITION

OF

UNITED

STATES

INCLUDES

ADMINISTRATIVE

ACTION.—Section 7430(c) (relating to definitions) is amended by adding at the end thereof the following new paragraph: "(4) POSITION OF UNITED STATES.—The term 'position of the United States' includes— "(A) the position taken by the United States in the civil proceeding, and "(B) any administrative action or inaction by the District Counsel of the Internal Revenue Service (and all subsequent administrative action or inaction) upon which such proceeding is based." (0 TECHNICAL AMENDMENT.—Subsection (a) of section 7430 is amended by inserting "(payable in the case of the Tax Court in the same manner as such an award by a district court)" after "a judgment". (g) PROVISIONS MADE PERMANENT.—Section 7430 is amended by striking out subsection (f). (h) EFFECTIVE DATES.—

(1) GENERAL RULE.—Except as provided in paragraph (2), the amendments made by 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) shall take effect as if included in the amendments made by section 292 of the Tax Equity and Fiscal Responsibility Act of 1982. (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, 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, as the case may be, shall be deemed to commence on the date of the enactment of this Act. SEC. 1552. FAILURE TO PURSUE ADMINISTRATIVE REMEDIES.

(a) GENERAL RULE.—Section 6673 (relating to damages assessable for instituting proceedings before the Tax Court primarily for delay, etc.) is amended by striking out "or that the taxpayer's position in such proceedings is frivolous or groundless" and inserting in lieu thereof ", that the taxpayer's position in such proceeding is frivolous or groundless, or that the taxpayer unreasonably failed to pursue available administrative remedies". O> EFFECTIVE DATE.—The amendment made by subsection (a) t) shall apply to proceedings commenced after the date of the enactment of this Act. (c) REPORT.—The Secretary of the Treasury or his delegate and the Tax Court shall each prepare a report for 1987 and for each 2calendar year period thereafter on the inventory of cases in the Tax Court and the measures to close cases more efficiently. Such reports

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