- 3 - I. Substantial Justification We may award costs to petitioners where respondent’s position was not substantially justified (i.e., did not have a reasonable basis in law and fact). See Pierce v. Underwood, 487 U.S. 552, 563-565 (1988). “The justification for each of respondent’s positions must be independently determined.” Foothill Ranch Co. Partnership v. Commissioner, 110 T.C. 94, 97 (1998). Respondent concedes that his position on the CFC issue was not substantially justified. Respondent contends that his position on the Marne issue was substantially justified, but he offers no law or fact supporting his position. In addition, respondent failed to contend that his position on the loss issue was substantially justified and offers no law or fact supporting his position. Thus, respondent has not established that his positions were substantially justified. See Maggie Management Co. v. Commissioner, 108 T.C. 430, 437-438 (1997) (stating that respondent must establish that his position was substantially justified as to petitions filed after July 30, 1996). II. Reasonableness of Fees and Costs A. Attorney’s FeesPage: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011