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Order. At that time in 1998, respondent determined the 1981
return tendered by petitioner to the revenue officer in 1985
constituted a valid tax return and conceded this case solely on
the grounds that the period of limitations had run. Although
respondent ultimately conceded this matter, we find the revenue
agent had a reasonable basis in fact and in law to question the
return tendered in 1985. Based on these facts, the position of
the United States before this Court was substantially justified.
Further, we also conclude that petitioner unreasonably
protracted the Court proceedings. Sec. 7430(b)(3). Petitioner
delayed resolution of this case in this Court proceeding because
he did not provide the copy of the 1981 return to respondent
until the eve of trial. Among other things, petitioner's action
caused respondent to submit a motion under Rule 91(f), a trial
memorandum, and three motions to quash subpoenas. The Court held
a conference call with the parties and by a March 20, 1998, Order
set respondent's motions to quash subpoenas for hearing on March
23, 1998. All these acts could have been avoided if petitioner
had provided respondent the copy of petitioner's 1981 income tax
return in response to respondent's June 4, 1997, letter.
For all the foregoing reasons, petitioner's motion for
litigation and administrative costs is denied.
An appropriate order and
decision will be entered.
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