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in part and revg. in part T.C. Memo. 1991-189; Estate of Perry,
931 F.2d at 1046; Powers v. Commissioner, supra at 471. Where
the facts on which the Commissioner relies are not "unusually
scanty or unworthy of belief," the failure of the facts to
convince the Court of the ultimate persuasiveness of the
respondent's position generally is not reason to hold that her
position is unreasonable or without substantial justification.
VanderPol v. Commissioner, 91 T.C. 367, 370 (1988).
Issue 1. Whether Petitioner Qualifies as a Prevailing Party
A. Recovery of Administrative Costs
Section 7430, for present purposes, limits recoverable
administrative costs to those incurred on or after the date of
the notice of deficiency and up to the time the petition was
filed. Sec. 7430(c)(2). See Huffman v. Commissioner, supra at
1145. Petitioner claims $2,312.55 as recoverable administrative
costs, based on accounting fees of $2,724 incurred between
December 7, 1991 and August 15, 1992, and legal fees of $1,375
incurred from June 24, 1992 to March 9, 1993. However, the
notice of deficiency was not issued until September 16, 1993.
Petitioner thus seeks administrative costs for accounting and
legal fees that it admittedly incurred prior to the date of the
statutory notice of deficiency. Consequently, we hold that
petitioner cannot recover any of these costs.
B. Recovery of Litigation Costs
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