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petitioner did not differentiate between which portion of the
alleged $5,000 in costs was incurred as administrative costs and
which portion was incurred as litigation costs. See Rule 231(d).
Under section 7430(a), a "prevailing party" may be awarded
reasonable administrative and litigation costs. Sher v.
Commissioner, 861 F.2d 131, 133 (5th Cir. 1988), affg. 89 T.C. 79
(1987); Miller v. Commissioner, T.C. Memo. 1993-346. To qualify
as a prevailing party, however, the taxpayer must establish that
respondent's position was not substantially justified. Sec.
7430(c)(4)(A)(i); Comer Family Equity Pure Trust v. Commissioner,
958 F.2d 136, 139 (6th Cir. 1992), affg. per curiam T.C. Memo.
1990-316.
Whether respondent's position was substantially justified
depends upon whether respondent's position was unreasonable in
light of all the facts and circumstances of the case and in light
of legal precedents. Whitesell v. Commissioner, 90 T.C. 702, 707
(1988); Chandler v. Commissioner, T.C. Memo. 1993-72. Generally,
respondent's concession of all or part of a case is not by itself
sufficient to establish that respondent's position was
unreasonable. Sokol v. Commissioner, 92 T.C. 760, 767 (1989);
Wasie v. Commissioner, 86 T.C. 962, 968-969 (1986).
The taxpayer must also establish that the taxpayer exhausted
available administrative remedies within the Internal Revenue
Service, sec. 7430(b)(1); that the taxpayer did not unreasonably
protract the proceedings, sec. 7430(b)(4); and that the fees and
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