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whipsaw situation as resolved because Mr. Sherbo could no longer
claim in the Tax Court the earned income credit at issue.
Respondent immediately conceded petitioner's case allowing
petitioner the earned income credit as claimed on her tax
returns. Respondent's position throughout the entire judicial
proceeding remained reasonably based on the facts known to
respondent and on the well-established legal consequences of
those facts.
Accordingly, we hold that respondent's position on the
issues in this case was substantially justified and that
petitioner is not entitled to an award for litigation costs under
section 7430. We thus need not address the reasonableness of the
costs claimed by petitioner. Petitioner's motion will therefore
be denied.
To reflect the foregoing,
An appropriate Order
and Decision will be entered.
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Last modified: May 25, 2011