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petition. Bertolino v. Commissioner, 930 F.2d 759, 761 (9th Cir.
1991), affg. an unpublished decision of the Tax Court; Sher v.
Commissioner, 861 F.2d 131, 134-135 (5th Cir. 1988), affg. 89
T.C. 79 (1987). Ordinarily, we consider the reasonableness of
each of these positions separately. Huffman v. Commissioner, 978
F.2d 1139, 1144-1147 (9th Cir. 1992), affg. in part, revg. in
part and remanding on other issues T.C. Memo. 1991-144. In the
present case, however, we need not consider two separate
positions because there is no indication that respondent's
position changed or that respondent became aware of any
additional facts that rendered his position any more or less
justified between the issuance of the notice of deficiency and
the filing of the answer to the petition.
We now turn to petitioners' contention that respondent's
position was not substantially justified. In this regard we hold
that respondent has established that he was substantially
justified, having acted reasonably given the legal precedents and
the circumstances surrounding petitioners' case.
Citing Price v. United States, 335 F.2d 671, 677 (5th Cir.
1964),5 petitioners argue that respondent should have taken into
account any and all nontaxable sources of income of which the
5 In Price v. United States, 335 F.2d 671, 677 (5th Cir.
1964), the Court of Appeals held that the taxpayer failed to
sustain his burden of rebutting the presumption of correctness
that attaches to the Commissioner's bank deposits determination.
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