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commenced in April 1996, and respondent conceded the for profit
issue in May 1996.
Respondent is entitled to a reasonable period of time in
which to review documentation and modify her position. Sokol v.
Commissioner, 92 T.C. 760, 765 n.10 (1989); Harrison v.
Commissioner, 854 F.2d 263 (7th Cir. 1988), affg. T.C. Memo.
1987-52. In Harrison v. Commissioner, supra, the Court held that
respondent's concession, some 6 months after she filed her
answer, was reasonable. In this instance, respondent conceded
the section 183 issue 5 months after she filed her answer and
within 2 months after the information described above was brought
to respondent's attention. This concession falls within the
boundaries of a reasonable period of time.
We conclude that respondent's position had a reasonable
basis in both law and fact. Pierce v. Underwood, 487 U.S. 552
(1988). Accordingly, we hold that respondent's position was
substantially justified and that petitioner is not entitled to
litigation costs under section 7430. Petitioners' motion will
therefore be denied.
An appropriate order and
decision will be entered.
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