- 2 -
Rule 231. Respondent concedes that petitioner meets all of the
requirements for an award of litigation costs under section 7430
except whether respondent's position in the underlying proceeding
was substantially justified. For reasons discussed below, we
hold that respondent's position was not substantially justified.
The parties submitted memoranda and affidavits supporting
their positions. We decide the motion based on the memoranda and
affidavits provided by the parties. Neither party requested a
hearing, and respondent stated that no hearing is required.
There are no significant factual disputes. We conclude that a
hearing is not necessary to properly decide this motion. Rule
232(a)(3). Background
1. Petitioner and the Underlying Tax Case
Petitioner was a closely held corporation the principal
place of business of which was in New York when it filed its
petition. Petitioner was in the oil, gas, film and television
business during the years in issue.
Petitioner's underlying case was decided at Saltzman v.
Commissioner, T.C. Memo. 1994-641. Several consolidated cases
were decided by that opinion. The primary issue involving
petitioner was whether it was liable for accumulated earnings
tax under section 531.
1(...continued)
effect for the years in issue. Rule references are to the Tax
Court Rules of Practice and Procedure.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011