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August 14, 1995, we decided that petitioners engaged in their
cattle-raising activity for profit and that certain depreciation
deductions claimed by petitioners were allowable for tax years
1987, 1988, and 1989. In addition, we found that petitioners
were liable for negligence and substantial understatement
additions to tax to the extent provided in our opinion. Finally,
we held that petitioners were not liable for the increased rate
of interest due on a substantial understatement attributable to a
tax-motivated transaction under section 6621(c). Eldridge v.
Commissioner, T.C. Memo. 1995-384. Our findings of fact and
opinion in the underlying case are incorporated by this
reference.
Section 7430 provides, inter alia, that, in any
administrative or court proceeding brought by or against the
United States in connection with the determination, collection,
or refund of any tax, interest, or penalty, the prevailing party
may be awarded reasonable administrative costs and litigation
1(...continued)
and Procedure, and all section references are to the Internal
Revenue Code unless otherwise indicated.
2 Although petitioners moved the Court for an award of both
litigation and administrative costs, the statement of costs
claimed by petitioners, which was attached to the motion as
required by Rule 231(b)(8), indicates that the costs were
incurred in connection with the filing of the petition and
thereafter. Accordingly, we treat petitioners' motion as a
motion solely for litigation costs. See Huffman v. Commissioner,
T.C. Memo. 1991-144, affd. in part, revd. in part, and remanded
978 F.2d 1139 (9th Cir. 1992).
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