Charles F. Urbauer - Page 4

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               Respondent contends that petitioner has not demonstrated               
          that the position of the United States was not substantially                
          justified or that the amounts claimed are reasonable.  Respondent           
          concedes that petitioner has satisfied the other requirements for           
          the award of reasonable litigation costs.  We shall first address           
          whether respondent's position was substantially justified.                  
               Respondent's position is substantially justified if it has a           
          reasonable basis in fact and law.  Powers v. Commissioner, 100              
          T.C. 457, 470 (1993).  The fact that the Commissioner loses or              
          concedes the case does not mean that the Government's position              
          was not substantially justified; however, it is a factor to be              
          considered.  Id. at 471.  To show lack of substantial                       
          justification, petitioner must demonstrate "that the legal                  
          precedent does not substantially support respondent's position              
          given the facts available to respondent."  Coastal Petroleum                
          Refiners, Inc. v. Commissioner, 94 T.C. 685, 688 (1990).                    
               Petitioner makes no substantive argument about the                     
          authority, or lack thereof, for respondent's legal position.  He            
          seems to assume that since a decision was entered under Rule 155,           
          he is entitled to half the litigation and administrative costs.             
          "The judge in the Trial Hearing (pg. 3 of Petitioner's Brief)               
          suggested filing for Litigation and Administrative costs, if you            


               2(...continued)                                                        
          Co. v. Commissioner, 108 T.C. 430 (1997).                                   




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