- 32 -
an award of litigation costs, the net worth test is applied to
each separately. Hong v. Commissioner, 100 T.C. 88, 91 (1993).
Although the term "net worth" is not statutorily defined,
the legislative history to the EAJA states: "In determining the
value of assets, the cost of acquisition rather than fair market
value should be used." H. Rept. 96-1418, at 15 (1980); see also
United States v. 88.88 Acres of Land, 907 F.2d 106, 107 (9th Cir.
1990); American Pacific Concrete Pipe Co., Inc. v. NLRB, 788 F.2d
586, 590 (9th Cir. 1986); Continental Web Press, Inc. v. NLRB,
767 F.2d 321, 322-323 (7th Cir. 1985).
To demonstrate that they each had a net worth of less than
$2,000,000 on the date their petition was filed, petitioners
submitted, on August 1, 1994, a "STATEMENT OF NET WORTH AT
ACQUISITION COST AS OF SEPTEMBER 21, 1992".22 Petitioners'
separate net worths were reported on this statement as follows:
21(...continued)
applies
* * * * * * *
(iii) which meets the requirements of
* * * section 2412(d)(2)(B) of title 28,
United States Code (as in effect on October
22, 1986) * * *.
As applicable to this case, 28 U.S.C. sec. 2412(d)(2)(B)
provides that a "party" means "an individual whose net worth did
not exceed $2,000,000 at the time the civil action was filed."
22
This statement of net worth was submitted as "attachment II"
to petitioners' amendment to motion for award of reasonable
litigation costs. As noted by petitioners, the figures presented
therein are unadjusted for depreciation.
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