Laura E. Austin - Page 9

          petitioners' submissions to this Court, that their net worth was            
          less than $2 million when their petition was filed.  Rule                   
          231(b)(5).  Thus, the only issue remaining for decision is                  
          whether the position of the United States in the administrative             
          and court proceedings was not substantially justified. Position             
          of the United States Not Substantially Justified                            
               To recover administrative and litigation costs, the taxpayer           
          must establish that the position of the United States was not               
          substantially justified both in administrative and court                    
          proceedings.  Huffman v. Commissioner, 978 F.2d 1139, 1148 (9th             
          Cir. 1992), affg. in part and revg. in part T.C. Memo. 1991-144.            
          A position is not substantially justified in law if legal                   
          precedent does not substantially support the Commissioner's                 
          position given the facts available to the Commissioner.  Coastal            
          Petroleum Refiners, Inc. v. Commissioner, 94 T.C. 685, 688                  
               In deciding this issue, we must identify the point in time             
          at which the United States is first considered to have taken a              
          position, and then decide whether the position taken from that              
          point forward was not substantially justified.  The "not                    
          substantially justified" standard is applied as of the separate             
          dates that respondent took a position in the administrative                 
          proceedings as distinguished from the proceedings in this Court.            
          Sec. 7430(c)(7)(A) and (B); Han v. Commissioner, T.C. Memo. 1993-           
          386.  The administrative position of respondent means the                   

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