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the United States in the civil proceeding was not substantially
justified. Sec. 7430(c)(4)(A)(i). (2) The taxpayer
substantially prevailed with respect to the amount in controversy
or with respect to the most significant issue or set of issues
presented. Sec. 7430(c)(4)(A)(ii). (3) The taxpayer must either
be an individual whose net worth does not exceed $2 million, or
an owner of an unincorporated business, or any partnership,
corporation, etc., the net worth of which does not exceed $7
million, at the time the petition was filed. Sec.
7430(c)(4)(A)(iii); 28 U.S.C. sec. 2412(d)(2)(B) (1988).
A taxpayer has the burden of proving that it meets each
requirement before we may order an award of costs under section
7430. Rule 230(e); Gantner v. Commissioner, 92 T.C. 192, 197
(1989), affd. 905 F.2d 241 (8th Cir. 1990).
In her notice of deficiency, respondent determined a
deficiency of $85,835, which was largely attributable to her
determination that ASAP's use of the cash method of accounting
did not clearly reflect income. In the stipulated settlement,
respondent conceded the method of accounting issue, and the
deficiency was adjusted to $4,898, which is attributable to
petitioners' concession of deductions for travel and
entertainment expenses. Thus, it is clear from the stipulated
settlement in this case that petitioners have substantially
prevailed on both the amount in controversy and the most
significant issue. In addition, we are satisfied, based upon
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