John L. Corrigan v. United States of America, John L. Corrigan v. United States

In this tax refund case the Internal Revenue Service (IRS) asks us to reverse the district court’s grant of attorney fees incurred by a pro se plaintiff prior to the preparation and filing of the instant complaint. The taxpayer,, pro se, asks us to reverse the district court’s denial of his request for attorney fees under 26 U.S.C. § 7430 (1988) (“I.R.C. § 7430” or “§ 7430”). We affirm in part and reverse in part.

FACTS AND PRIOR PROCEEDINGS

John L. Corrigan (Taxpayer) worked as an office manager for a company that went out of business owing the IRS approximately $35,000 in Social Security and income taxes withheld from employees’ wages. The IRS tried to collect from the owners of the company and from Taxpayer. The IRS applied Taxpayer’s income tax refund of approximately $900 to his former employer’s tax liability. Taxpayer retained counsel in an effort to recover this money, but the parties were unable to come to an agreement. Taxpayer dismissed his counsel.

Taxpayer, appearing pro se, filed this action in federal district court, claiming a refund of the $900. The parties filed cross motions for summary judgment. The district court granted Taxpayer’s motion for summary…