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1997-227, we noted that petitioner should have been liable for
the taxes on 50 percent of the gain. However, since the
Government conceded 25 percent of the taxes due on the gain, we
held the Government to its concession. Id.
This case is unusual in that when the Government was seeking
the larger deficiency amount, its position was legally correct.
Its concession resulted in a windfall for petitioner; he avoided
liability for taxes he otherwise legally would have owed. Given
the benefit to petitioner and given that the Court would have
held for the Government had it maintained its original position,
we hold that there was substantial justification for the
Government's position. Since we find for the Government on that
issue, we need not consider whether the amounts claimed by
petitioner as administration and litigation costs were
reasonable.
To reflect the foregoing,
Petitioner's motion
will be denied and order and
decision will be entered in
accordance with respondent's
Rule 155 computation.
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