7
v. Guiffrida, 748 F.2d 1011, 1015 (5th Cir. 1984); Powers v.
Commissioner, supra at 473. For a position to be substantially
justified, there must be "substantial evidence" to support it.
Pierce v. Underwood, supra at 564-565; Powers v. Commissioner,
supra at 473.
The fact that the Commissioner eventually loses or concedes
the case does not in itself establish that a position is
unreasonable. Wilfong v. United States, 991 F.2d 359, 364 (7th
Cir. 1993); Hanson v. Commissioner, 975 F.2d 1150, 1153 (5th Cir.
1992). However, it is a factor to be considered. Heasley v.
Commissioner, 967 F.2d 116, 120 (5th Cir. 1992), affg. in part
and revg. in part T.C. Memo. 1991-189; Estate of Perry v.
Commissioner, 931 F.2d 1044, 1046 (5th Cir. 1991); Powers v.
Commissioner, supra at 471. The taxpayer need not show that the
Commissioner demonstrated bad faith to establish that the
Commissioner's position was not substantially justified for
purposes of a motion for litigation costs under section 7430.
Estate of Perry v. Commissioner, supra; Powers v. Commissioner,
supra.
2. Whether Respondent's Position That the Covenant Not To
Compete Had No or Minimal Value Had a Reasonable Basis
in Fact and Law
Respondent's position in Beaver Bolt, Inc. v. Commissioner,
T.C. Memo. 1995-549, was that Grecco's stock was worth $189,300
and that the covenant not to compete was worth $52,669.
Petitioner contends that the position of the United States was
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011