Page:United States Statutes at Large Volume 112 Part 1.djvu/755

 PUBLIC LAW 105-206-JULY 22, 1998 112 STAT. 729 "(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.— I f this subparagraph applies Applicability. 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.— Th is subparagraph shall not apply to a party which is a prevailing party under any other provision of this paragraph.". (2) QUALIFIED OFFER.— Section 7430 is amended by adding at the end the following new subsection: "(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.". (f) AWARD OF ATTORNEYS FEES IN UNAUTHORIZED INSPECTION AND DISCLOSURE CASES. —Section 7431(c) (relating to damages) is amended by striking the period at the end of paragraph (2) and inserting ", plus", and by adding at the end the following new paragraph: "(3) in the case of a plaintiff which is described in section 7430(c)(4)(A)(ii), reasonable attorneys fees, except that if the defendant is the United States, reasonable attorneys fees may be awarded only if the plaintiff is the prevailing party (as determined under section 7430(c)(4)).". (g) EFFECTIVE DATE.— The amendments made by this section Applicability. shall apply to costs incurred (and, in the case of the amendment 26 uSC 7430 note.

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