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obligations that were unrelated to its obligations to the county
(e.g., the construction of affordable housing units). As a
result, the construction of buildings and improvements to real
property was necessary to fulfill FRC's obligations under the
sales agreements, and these obligations were not completed within
the 1988 tax year. Accordingly, we conclude that respondent's
position relating to this issue was not substantially justified.
B. Net Worth
To be a "prevailing party", a party must meet EAJA's net
worth requirements. Sec. 7430(c)(4)(A)(iii). Specifically, a
party that is a corporation or partnership may not have a net
worth of more than $7,000,000 or more than 500 employees. EAJA,
28 U.S.C. sec. 2412(d)(2)(B) (1994). Petitioner and respondent
have differing views regarding who must meet the net worth
requirements. We reject both parties' contentions.
Petitioner contends that we must look to the partnership
entity, FRC, to determine whether the net worth requirements are
met. This partnership proceeding, however, is governed by the
procedural rules of the Tax Equity and Fiscal Responsibility Act
of 1982 (TEFRA), Pub. L. 97-248, sec. 402(a), 96 Stat. 324, 648,
codified as secs. 6221-6233. The partners, rather than the
partnership entity, are the parties in a TEFRA proceeding. See
secs. 6226(c), 6228(a)(4); Rule 247; Chef's Choice Produce, Ltd.
v. Commissioner, 95 T.C. 388, 395 (1990); see also Southwest
Marine, Inc. v. United States, 43 F.3d 420 (9th Cir. 1994)
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