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1148 (9th Cir. 1992), affg. in part, revg. in part and remanding
T.C. Memo. 1991-144.
Respondent takes a position in an administrative proceeding
as of the earlier of the date the taxpayer receives an IRS
Appeals decision or the Commissioner sends the notice of
deficiency. Sec. 7430(c)(7)(B). Respondent's position in the
administrative proceeding was established on March 13, 1997, when
the statutory notices of deficiency were mailed. Respondent took
a position in the judicial proceeding in these cases on August
12, 1997, when respondent's answers were filed. Sec.
7430(c)(7)(A); California Marine Cleaning, Inc. v. Commissioner,
T.C. Memo. 1998-311; Kahn-Langer v. Commissioner, T.C. Memo.
1995-527; Lockett v. Commissioner, T.C. Memo. 1994-144 (citing
Huffman v. Commissioner, supra at 1148); Amann v. Commissioner,
T.C. Memo. 1993-542, affd. per curiam without published opinion
40 F.3d 1235 (1st Cir. 1994). In this instance it is not
necessary to analyze respondent's position separately on each of
these dates as respondent's position was the same at both times.
Swanson v. Commissioner, 106 T.C. 76, 87 (1996).
We now consider whether respondent's position in the
administrative and judicial proceedings was substantially
justified. We analyze respondent's position in the context of
what caused respondent to take that position. Lennox v.
Commissioner, 998 F.2d 244, 247-249 (5th Cir. 1993), revg. in
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