Laura E. Austin - Page 8

          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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