Paul Frehe Enterprises, Inc. - Page 3

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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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