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administrative proceeding, determined in this case as of July 22,
1991, the date of the notice of deficiency. Sec.
7430(c)(7)(B)(ii). The position taken by the United States, for
purposes of litigation costs, refers to the position of the
Unites States in a judicial proceeding. Sec. 7430(c)(7)(A). A
judicial proceeding is commenced in this Court with the filing of
a petition. Rule 20(a). Generally, the Commissioner takes a
position on the date the answer is filed. Huffman v.
Commissioner, 978 F.2d 1139, 1148 (9th Cir. 1992), affg. in part
and revg. in part T.C. Memo. 1991-144. In order to recover
administrative costs and litigation costs, the taxpayer must
establish that the position of the United States was not
substantially justified both in the administrative and court
proceedings. Id. at 1143-1147. It is not entirely clear from
petitioner's motion whether petitioner seeks the recovery of
reasonable administrative costs. The ambiguity does not change
our analysis. Respondent contends, and petitioner does not
dispute, that the position taken in her answer, filed November
22, 1991, did not differ from the position taken in the notice of
deficiency. In both, respondent maintained that petitioner had
not demonstrated entitlement to the deductions for contributions
to a qualified retirement plan.
Petitioner's case is one of many so-called actuarial cases
which resulted from respondent's actuarial project involving the
reasonableness of actuarial assumptions in connection with
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