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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.
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