- 11 -
substantially justified" standard is applied as of the separate
dates that respondent took a position in the administrative
proceeding as distinguished from the proceeding in this Court.
Sec. 7430(c)(7)(A) and (B); Han v. Commissioner, T.C. Memo. 1993-
386. For purposes of the administrative proceeding, respondent
took a position on August 23, 1995, the date of the notice of
deficiency. Sec. 7430(c)(7)(B).6 For purposes of the proceeding
in this Court, respondent took a position on January 16, 1996,
the date respondent filed the answer. See Huffman v.
Commissioner, 978 F.2d 1139, 1143-1147 (9th Cir. 1992), affg. in
part and revg. in part on other grounds, and remanding T.C. Memo.
1991-144. In this case, respondent's position as of each of
these dates was the same. More specifically, respondent's
position was that petitioner failed, without reasonable cause, to
file a Federal income tax return for 1992, failed to pay
estimated taxes, failed to report income earned by him during
1992, and failed to substantiate deductions to which he claimed
he was entitled.
6 Sec. 7430(c)(7)(B) provides that respondent takes a
position in an administrative proceeding on the earlier of "the
date of the receipt by the taxpayer of the notice of the decision
of the [IRS] Office of Appeals" or "the date of the notice of
deficiency." No notice of decision of the IRS Appeals Office was
ever issued or received by petitioner prior to the date of the
notice of deficiency. Therefore, respondent is considered to
have taken a position on the date the notice of deficiency was
issued.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011