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proceeding was not substantially justified. Sec.
7430(c)(4)(A)(i). (2) The taxpayer substantially prevailed with
respect to the amount in controversy or with respect to the most
significant issue or set of issues presented. Sec.
7430(c)(4)(A)(ii). (3) The taxpayer is either an individual
whose net worth does not exceed $2 million, or an owner of an
unincorporated business, or any partnership, corporation, etc.,
the net worth of which does not exceed $7 million at the time the
petition is filed. Sec. 7430(c)(4)(A)(iii); 28 U.S.C. sec.
2412(d)(2)(B) (1988).
Respondent concedes that petitioner substantially prevailed
in Galedrige I. In addition, we are satisfied, based upon
petitioner's submissions to this Court, that petitioner's net
worth was less than $7 million when its petition was filed. Rule
231(b)(5). Thus, the only issue remaining for decision is
whether the position of the United States in the Court proceeding
was not substantially justified.
Position of the United States Not Substantially Justified
A position is not substantially justified in law if legal
precedent does not substantially support the Commissioner's
position given the facts available to the Commissioner. Coastal
Petroleum Refiners, Inc. v. Commissioner, 94 T.C. 685, 688
(1990). In deciding this issue, we must identify the point at
which the United States is first considered to have taken a
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