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The deductions that petitioners claimed on their tax returns
exceeded the income they reported thereon by such large amounts
that, even after the parties’ agreements as to net adjustments
for 1991 ($37,374) and 1992 ($191,973), petitioners do not have
deficiencies for either year.
Petitioners’ reasonable litigation costs in the instant
case, including their costs of litigating their motion for award
of litigation costs, are $15,000.
_____________________________________
Petitioners have exhausted the administrative remedies
available to them. Petitioners have not unreasonably protracted
the proceeding in this Court. Petitioners have substantially
prevailed with respect to the amount in controversy. Petitioners
have satisfied the applicable net worth limitation.
The position of respondent in the instant proceeding was not
substantially justified.
Discussion
The Congress has provided for the awarding of litigation
costs to taxpayers in certain circumstances. Under section
7430,6 a taxpayer who satisfies a series of requirements is
6 Sec. 7430 provides, in pertinent part, as follows:
SEC. 7430. AWARDING OF COSTS AND CERTAIN FEES.
(a) In General.--In any administrative or court
proceeding which is brought by or against the United States
in connection with the determination, collection, or refund
of any tax, interest, or penally under this title [the
Internal Revenue Code of 1986], the prevailing party may be
awarded a judgment or a settlement for--
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