- 14 -
before conceding issues and settling a case. Sliwa v.
Commissioner, 839 F.2d 602, 609 (9th Cir. 1988). Respondent
attempted this through both telephone conversations with Mr.
Guterman and the Branerton letter. Petitioner has not suggested
that respondent's actions after the issuance of the notice of
deficiency were improper or in an effort to delay the proceedings.
In fact, only 1-1/2 months after receiving petitioner's responses
to respondent's Branerton letter and petitioner's own bank deposit
analysis, respondent made a request to settle the case, and shortly
thereafter respondent did in fact concede the majority of it. Cf.
Brantley v. Commissioner, supra, and cases cited therein.
Although petitioner may have believed that the third party
information obtained by the Government was sufficient to resolve
this case, it was not enough to satisfy respondent in the exercise
of reasonable judgment. We find that respondent's position during
the judicial proceeding was substantially justified.
Because we hold that respondent's position was substantially
justified in this case, we do not need to address whether
petitioner exhausted her administrative remedies or whether the
costs sought are reasonable.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011