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Discussion
1. Motion for Administrative and Litigation Costs:
Introduction
Generally, a taxpayer who has substantially prevailed in
a Tax Court proceeding may be awarded reasonable administrative
and litigation costs. Sec. 7430(a), (c). To be entitled to an
award, the taxpayer must:
a. Exhaust administrative remedies. Sec. 7430(b)(1).
Respondent concedes that petitioner meets this requirement.
b. Substantially prevail with respect to the amount in
controversy. Sec. 7430(c)(4)(A)(ii)(I). Respondent concedes
that petitioner meets this requirement.
c. Be an individual whose net worth did not exceed
$2,000,000, or an owner of an unincorporated business, or any
partnership, corporation, etc., the net worth of which did not
exceed $7,000,000, when the petition was filed. Sec.
7430(c)(4)(A)(iii); 28 U.S.C. sec. 2412(d)(2)(B) (1988).
Respondent concedes that petitioner meets this requirement.
d. Show that the position of the United States in the
action was not substantially justified. Sec. 7430(c)(4)(A)(i).
Respondent contends and we hold that petitioner does not meet
this requirement.
e. Establish that the amount of costs and attorney's fees
claimed by petitioner is reasonable. Sec. 7430(a), (c)(1) and
(2). Respondent contends that petitioner does not meet this
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