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notice of decision of the Appeals Office of the Service or (2)
the date of the notice of deficiency. Sec. 7430(c)(7)(B). It
appears from each record that prior to the issuance of the
deficiency notices, a notice of decision was not sent to
petitioners. Accordingly, for purposes of petitioners' claim for
reasonable administrative costs, the position of the United
States means the position taken by the Service in an
administrative proceeding to which section 7430 applies as of
September 24, 1993, the date of the notice of deficiency in the
instant cases.
With respect to a claim for reasonable litigation costs, the
phrase "position of the United States", as used in section 7430,
means the position taken by the United States in a judicial
proceeding to which section 7430 applies. Sec. 7430(c)(7)(A).
Thus, the position of the United States means the position taken
by respondent in the instant cases. Generally, the Commissioner
initially takes a position on the date an answer is filed in
response to the petition. Huffman v. Commissioner, 978 F.2d
1139, 1148 (9th Cir. 1992), affg. in part and revg. in part T.C.
Memo. 1991-144. Respondent filed an answer to each action on
February 25, 1994. Therefore, the position of the United States
for purposes of petitioners' claims for reasonable litigation
costs is the position first taken by respondent in the instant
cases on or after February 25, 1994.
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