Steven M. Kipperman and Stephanie Kipperman v. Commissioner of Internal Revenue

This case presents a question of first impression for this court. At issue is the interpretation of the Civil Rights Attorney’s Fees Awards Act of 1976 (Act), 42 U.S.C. § 1988 , as it applies to a taxpayer who is the prevailing party in the Tax Court in a dispute with the Internal Revenue Service. This action involves a request for $2,500 in attorney’s fees made by Steven M. Kipperman after he was the prevailing party in the Tax Court on the substantive tax issue. Kipperman contends that the Tax Court erred when it concluded that the portion of the Act authorizing awards of attorney’s fees in tax cases is not applicable to a suit instituted by a taxpayer in the Tax Court. We affirm.

The facts are undisputed. In 1973, Kipperman was an equal partner in a partnership that claimed an investment tax credit on its purchase of personal property from one of its partners. The Internal Revenue Service, relying on Treasury Income Tax Regulation § 1.48-3(a)(2)(ii), asserted a deficiency against Kipperman in the amount of $182.77. Kipperman then petitioned the United States Tax Court to redetermine the deficiency. The Tax Court granted Kipper-man’s motion for summary judgment in a memorandum…