- 15 - judicial proceeding to which section 7430(a) applies, sec. 7430(c)(7)(A). Respondent’s litigating position is that taken in his answer, which was filed on May 1, 2003. See Huffman v. Commissioner, 978 F.2d 1139, 1148 (9th Cir. 1992), affg. in part, revg. in part and remanding T.C. Memo. 1991-144; Maggie Mgmt. Co. v. Commissioner, 108 T.C. 430, 442 (1997). Respondent’s position in the answer was that the investment in SGE was a joint investment, and petitioner was not entitled to relief under section 6015(c) because she did not meet the marital status requirement and had actual knowledge, when she signed the returns, of any items giving rise to the deficiency that were allocable to her spouse. The Commissioner’s position is substantially justified if it has a reasonable basis in both fact and law and is justified to a degree that could satisfy a reasonable person. Huffman v. Commissioner, supra at 1147 n.8 (citing Pierce v. Underwood, 487 U.S. 552, 565 (1988)); Maggie Mgmt. Co. v. Commissioner, supra at 443; sec. 301.7430-5(c)(1), Proced. & Admin. Regs. The reasonableness of the Commissioner’s position turns on the available facts that formed the basis for the position and any legal precedents related to the case. Maggie Mgmt. Co. v. Commissioner, supra at 443; DeVenney v. Commissioner, 85 T.C. 927, 930-931 (1985). A significant factor in determining whether the Commissioner’s position is substantially justified as of aPage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
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