Roger L. and Patricia A. Lavallee - Page 14

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            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 by                            

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