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Commissioner, 861 F.2d 131, 134-35 (5th Cir. 1988), affg. 89 T.C.
79 (1987).
In deciding whether the Commissioner's position was
substantially justified, the Court will consider not only the
basis of the Commissioner's legal position, but also the manner
in which the Commissioner maintained that position. Wasie v.
Commissioner, 86 T.C. 962, 969 (1986). In assessing the
Commissioner's position in each of the proceedings, we may
consider, inter alia, whether the Commissioner used the costs and
expenses of litigation to extract unjustified concessions from
the taxpayer, whether the Commissioner pursued litigation to
harass or embarrass the taxpayer, or whether the Commissioner's
pursuit of the litigation was politically motivated. Rutana v.
Commissioner, 88 T.C. 1329, 1333 (1987); DeVenney v.
Commissioner, 85 T.C. 927, 930 (1985).
In the present case, respondent's position, both at the time
she issued the notice of deficiency and at the time she filed the
answer, was that petitioner was liable for a deficiency in income
tax and additions to tax for 1988. It is respondent's agreement
that petitioner paid her total income tax liability for 1988 in
April 1989 that forms the basis of petitioner's claim for
administrative and litigation costs. In other words, petitioner
posits that she is a prevailing party within the meaning of
section 7430 on the ground that respondent's position was not
substantially justified, either at the time the notice of
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