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that the Court has rejected this argument and has held that
respondent's position in the prior Allstate cases was
substantially justified, citing Mosteirin v. Commissioner, T.C.
Memo. 1995-419 (Mosteirin II). Respondent further contends that
the pension and self-employment tax issues were new issues which
were not litigated in the prior Allstate cases, that the pension
and self-employment tax issues are supported by a reasonable
basis in law and fact, and that it was necessary to try the
classification issue together with the pension and self-
employment tax issues.
Petitioners are not seeking an award of administrative
costs. Therefore, we need only examine the question of whether
respondent's litigation position was substantially justified.
See Swanson v. Commissioner, 106 T.C. 76, 86 (1996).
A. Position of the United States
The position taken by the United States, for purposes of
litigation costs, is the position of the United States in a
judicial proceeding. Sec. 7430(c)(7)(A). Respondent took his
position in the judicial proceeding herein on the date
respondent's answer was filed--February 6, 1995. See Huffman v.
Commissioner, 978 F.2d 1139, 1148 (9th Cir. 1992), affg. in part
and revg. in part T.C. Memo. 1991-144.
B. Substantial Justification
The substantially justified standard is "essentially a
continuation of the prior law's reasonableness standard."
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