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information that respondent had long sought. By letter dated
March 3, 1995, respondent conceded several of the adjustments in
the notice of deficiency. In the same letter, respondent asked
for additional documentation with respect to the adjustment for
earned income. After receiving the additional information from
petitioner on March 19, 1995, respondent conceded, 3 days later,
more of the income adjustments and the substantial understatement
penalty. As a result, a settlement was reached by the parties.
The record of the case clearly shows that respondent's
litigation position was reasonable. It is apparent from the
record that petitioner provided very little in the way of
documentation until such time as the case progressed toward an
ultimate trial date. The correspondence in the record does not
indicate or show any unreasonableness on the part of respondent's
Appeals Officer, nor does the correspondence from petitioner's
attorney to the Appeals Officer indicate or express any
frustration or complaints about respondent's positions or
requests for additional information. Based on this record,
therefore, this Court holds that petitioner is not entitled to
litigation costs for the 1988 case.
With respect to petitioner's 1989 tax case, the
correspondence described above with respect to the 1988 tax case
also dealt with the 1989 tax year. For the same reasons
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