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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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