- 12 -
issuance of the notices of deficiency approximately 1-1/2 years
later. Petitioners state that respondent unjustly denied them
the opportunity to seek an administrative appeal by not issuing a
second 30-day letter after issuing the revised examination
report. Petitioners charge that there existed a pattern of
harassment against petitioners by respondent's agents, which
unreasonably increased the asserted deficiencies and made
petitioners' substantiation efforts unduly difficult.
We are not persuaded by petitioners' arguments. Based on
our review of the record before us, we find nothing to support
petitioners' claims of overreaching and abusive tactics by
respondent's agents. To the contrary, our review of the record
indicates that respondent expeditiously conceded several issues
when petitioners provided convincing evidence concerning the
matters in dispute. Although petitioners attempt in their motion
to articulate the abuse and overreaching of respondent's agents,
such statements are not proof. Rule 143(b); See Niedringhaus v.
Commissioner, 99 T.C. 202, 214 n.7 (1992); Viehweg v.
Commissioner, 90 T.C. 1248, 1255 (1988); Evans v. Commissioner,
48 T.C. 704, 709 (1967), affd. 413 F.2d 1047 (9th Cir. 1969).
We hold that respondent's positions had a reasonable basis
in law and fact. Accordingly, petitioners are not entitled to
administrative and litigation costs under section 7430.
To reflect the foregoing,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011