Robert Lloyd - Page 10




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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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