- 8 -
86 T.C. 962, 969 (1986). A position is substantially justified
if the position is "justified to a degree that could satisfy a
reasonable person". Pierce v. Underwood, supra at 565; see also
Lennox v. Commissioner, 998 F.2d 244, 248 (5th Cir. 1993), revg.
in part T.C. Memo. 1992-382; Norgaard v. Commissioner, 939 F.2d
874, 881 (9th Cir. 1991), affg. in part and revg. in part T.C.
Memo. 1989-390. That standard is the same as the reasonable
basis both in fact and law standard used by this and other
courts. Pierce v. Underwood, supra at 564; Powers v.
Commissioner, supra at 471.
Other factors that may be taken into account in making this
determination include (1) whether the Government used the costs
and expenses of litigation against its position to extract
concessions from the taxpayer that were not justified under the
circumstances of the case, (2) whether the Government pursued the
litigation against the taxpayer for purposes of harassment or
embarrassment, or out of political motivation, and (3) such other
factors as the Court finds relevant. H. Rept. 97-404, at 12
(1981); see also Sher v. Commissioner, 89 T.C. 79, 85 (1987),
affd. 861 F.2d 131 (5th Cir. 1988).
With respect to a claim for reasonable administrative costs,
the phrase "position of the United States", as used in section
7430, means the position taken by the United States in any
administrative proceeding to which section 7430 applies as of the
earlier of (1) the date of the receipt by the taxpayer of the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011