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and remanding T.C. Memo. 1991-144; Maggie Management Co. v.
Commissioner, 108 T.C. 430, 442 (1997).
Whether respondent’s position was substantially justified
turns on a finding of reasonableness, based upon all the facts
and circumstances, as well as the legal precedents relating to
these cases. See Pierce v. Underwood, 487 U.S. 552 (1988); Sher
v. Commissioner, 89 T.C. 79, 84 (1987). A position is
substantially justified if the position is justified to a degree
that could satisfy a reasonable person. See Pierce v. Underwood,
supra at 565; Maggie Management Co. v. Commissioner, supra at
443. A position must have a reasonable basis both in law and
fact. See Pierce v. Underwood, supra at 563-565. The fact that
respondent eventually loses or concedes a case does not by itself
establish that respondent’s position was unreasonable. See
Maggie Management Co. v. Commissioner, supra at 443; Sokol v.
Commissioner, 92 T.C. 760, 767 (1989).
Petitioner asserts that he delivered documents regarding the
1992 tax year to respondent on November 30, 1995. Petitioner
further asserts that the position respondent took in his answer
was not substantially justified because respondent failed to
review the documents prior to filing an answer. Respondent
contends that he did not receive the documents prior to filing
his answer.
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