-10- position taken in the administrative proceedings as of the earlier of the date of receipt of the appeals decision by the taxpayer or the date of the notice of deficiency. Sec. 7430(c)(7)(B). Section 7430(c)(5) defines administrative proceeding as any procedure or other action before the Internal Revenue Service. In this case respondent took a position in the administrative proceeding as of June 3, 1994, the date of the notice of deficiency was issued.4 See sec. 7430(c)(7)(B)(ii). The position taken by the United States, for purposes of litigation costs, refers to the position of the United States in a judicial proceeding. Sec. 7430(c)(7)(A). Respondent took positions in the judicial proceedings herein on the dates respondent filed her answers; i.e., September 26, 1994, in the first docket and October 24, 1994, in the second. Huffman v. Commissioner, supra. Although ordinarily the reasonableness of each of those positions is considered separately to allow respondent to change her position, Huffman v. Commissioner, supra at 1144-1147, it appears in this case that respondent took the same positions in both the notice of deficiency and the answers. More specifically, respondent's position was that petitioners overstated deductions for travel and entertainment, overstated 4 The record does not show that a notice of decision of the IRS Appeals Office was ever issued or received by petitioners prior to the date of the notice of deficiency. Therefore, respondent is considered to have taken a position in the administrative proceedings on the date the notice of deficiency was issued.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011