110 STAT. 1464 PUBLIC LAW 104-168-^ULY 30, 1996 "(II) any of the following which are issued to the taxpayer: private letter rulings, technical advice memoranda, and determination letters.", (c) CohfFORMiNG AMENDMENTS.— (1) Subparagraph (B) of section 7430(c)(2) is amended by striking "paragraph (4)(B)" and inserting "paragraph (4)(C). (2) Subparagraph (C) of section 7430(c)(4), as redesignated by subsection (b), is amended by striking "subparagraph (A)" and inserting "this paragraph". (3) Sections 6404(g) and 6656(c)(1), as amended by this Act, are each amended by striking "section 7430(c)(4)(A)(iii)" and inserting "section 7430(c)(4)(A)(ii)". 26 USC 6404 (d) EFFECTIVE DATE. —The amendments made by this section note. shall apply in the case of proceedings commenced after the date of the enactment of this Act. SEC. 702. INCREASED LIMIT ON ATTORNEY FEES. (a) IN GENERAL. — Paragraph (1) of section 7430(c) (defining reasonable litigation costs) is amended— (1) by striking "$75" in clause (iii) of subparagraph (B) and inserting "$110", (2) by striking "an increase in the cost of living or" in clause (iii) of subparagraph (B), and (3) by adding after clause (iii) the following: "In the case of any calendsir 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-Uving 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 aiter being increased under the preceding sentence is not a multiple of $10, such dollar amount shall be roimded to the nearest multiple of $10.". 26 USC 7430 (b) EFFECTIVE DATE.— The amendment made by this section note. shall apply in the case of proceedings commenced after the date of the enactment of this Act. SEC. 703. FAILURE TO AGREE TO EXTENSION NOT TAKEN INTO ACCOUNT. (a) IN GENERAL.— Paragraph (1) of section 7430(b) (relating to requirement that administrative remedies be exhausted) is amended by adding at the end the following new sentence: "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.". 26 USC 7430 (b) EFFECTIVE DATE.— The amendment made by this section note. shall apply in the case of proceedings commenced after the date of the enactment of this Act. SEC. 704. AWARD OF LITIGATION COSTS PERMITTED IN DECLARATORY JUDGMENT PROCEEDINGS. (a) IN GENERAL. —Subsection (b) of section 7430 is amended by striking paragraph (3) and by redesignating paragraph (4) as paragraph (3). 26 USC 7430 (b) EFFECTIVE DATE.—The amendment made by this section note. shall apply in the case of proceedings commenced after the date of the enactment of this Act.
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