-22-
Commissioner, 85 T.C. at 930. Thus, the determination of whether
respondent was substantially justified in her position turns on
when she knew the facts of this issue. Following an Appeals
conference, the District Director sent a letter dated September
16, 1993, to petitioner's accountant, Mr. Charles Currie,
offering to concede the software issue if petitioner would
concede the travel expense issue and the method of accounting
issue. The letter states "the settlement offer is reasonable in
light of the evidence presented in the case." Neither the letter
nor the record indicates what specific evidence the letter may be
referring to; however, with no further discussion evident in the
record, respondent conceded the software issue on the day of the
trial. Thus, we conclude that respondent knew the facts of this
issue before the notice of deficiency was mailed. Accordingly,
we find respondent was not substantially justified in her
position on this issue.
Issues Conceded by Petitioner
Petitioners concede the $14,842 travel expense issue, and
Hashimoto concedes that he was not an innocent spouse. As
petitioners are not the prevailing party on these issues, we
shall not award petitioners reasonable litigation or
administrative costs with respect to either of these issues.6
6 Hashimoto's motion for litigation costs was limited to
his expenditure for representation in the innocent spouse issue.
Accordingly, we do not award any costs to him.
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011