Pramod and Raj Tandon - Page 17

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          or respondent's Appeals officer.  However, the fact that                    
          respondent's counsel agreed to settle the case is certainly not             
          conclusive that Revenue Agent Bacino's adjustments and                      
          respondent's subsequent position that resulted therefrom were               
          unreasonable.  As we have already stated, the Commissioner's                
          concession of an issue does not necessarily lead to a finding               
          that the Commissioner's position was not substantially justified.           
          See, e.g., Wilfong v. United States, 991 F.2d 359, 364 (7th Cir.            
          1993); Sokol v. Commissioner, supra; Wasie v. Commissioner, 86              
          T.C. 962, 968-969 (1986).  We are aware that respondent's                   
          attorneys have much more latitude to settle a case based on the             
          hazards of litigation and other considerations than do                      
          respondent's Appeals officers or revenue agents.                            
               Finally, petitioners argue that the standard for awarding              
          costs under section 7430 by the Court of Appeals for the Fifth              
          Circuit, the circuit to which this case is appealable, supports             
          their claim for costs.  We have reviewed many Fifth Circuit                 
          cases, including those cited by petitioners, and conclude that              
          our decision herein properly applies the Fifth Circuit's standard           
          regarding the award of costs under section 7430 and is consistent           
          with the precedents established by that court.  See Golsen v.               
          Commissioner, 54 T.C. 742 (1970), affd. 445 F.2d 985 (10th Cir.             
          1971).                                                                      
               Therefore, we hold that respondent has established that his            
          position in the administrative and litigation proceedings was               




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