Ingo H. Jensen - Page 8

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          the United States in the proceeding was not substantially                   
          justified; (2) petitioner substantially prevailed with respect to           
          either the amount in controversy or with respect to the most                
          significant issue presented; and (3) petitioner met the net worth           
          requirements of 28 U.S.C. section 2412(d)(2)(B) (1994) at the               
          time the petition was filed.  Sec. 7430(c)(4).  Respondent has              
          the burden of proving that the position of the United States was            
          substantially justified, and petitioner bears the burden of proof           
          with respect to all other requirements.  See sec. 7430(c)(4)(B);            
          Rule 232(e); Maggie Management Co. v. Commissioner, 108 T.C. 430,           
          437 (1997).                                                                 
               Respondent concedes that petitioner substantially prevailed            
          with respect to the amount in controversy, and that petitioner              
          met the net worth requirements.  Respondent maintains, however,             
          that respondent’s position was substantially justified, that                
          petitioner failed to exhaust his administrative remedies, and               
          that petitioner unreasonably protracted the proceedings.  The               
          requirements of section 7430 are conjunctive; therefore, failure            
          to meet any one of the requirements will preclude an award of               
          costs.  See Minahan v. Commissioner, 88 T.C. 492, 497 (1987).               
          While we have great difficulty with petitioner’s argument that              
          respondent’s position was not substantially justified, we do not            
          believe that it is necessary to reach that question.  In our                

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