- 14 - that could satisfy a reasonable person." Pierce v. Underwood, 487 U.S. 552, 565 (1988); Powers v. Commissioner, 100 T.C. 457, 470-471 (1993). The fact that respondent loses or concedes a case, without more, does not establish an unreasonable position. Sokol v. Commissioner, 92 T.C. 760, 767 (1989). Rather, the reasonableness of respondent's position is determined by considering the information available to her at the time the notice of deficiency was issued. Sharer v. Commissioner, T.C. Memo. 1996-90; see also Rutana v. Commissioner, 88 T.C. 1329, 1334 (1987). The adjustments made by Office Auditor Barrow during her exmaination of petitioners' Federal income tax returns for 1985, 1986, and 1987 formed the basis of respondent's notice of deficiency in this case. However, neither petitioners' testimony at trial nor their post-trial brief clearly identified the particular adjustments that petitioners contend were not substantially justified. For instance, the only adjustments which Mr. Lavallee made specific reference to in his testimony were Officer Auditor Barrow's purported adjustments for trip sheets and oil. However, Office Auditor Barrow's examination workpapers do not discuss an adjustment for trip sheets. While the adjustments for oil may have been contained within the nominal adjustments of petitioners' Schedule C deductions for car/truck expenses, the amounts allowed by Office Auditor Barrow were determined on the basis of the substantiation provided byPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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