Beaver Bolt, Inc. - Page 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,             
               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              

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