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former spouses in the alimony context. See Doggett v.
Commissioner, 66 T.C. 101, 103 (1976); Ryan v. Commissioner, T.C.
Memo. 1999-109; see also Maggie Management Co. v. Commissioner,
108 T.C. 430, 446 (1997); Sherbo v. Commissioner, T.C. Memo.
1999-367. In the present case, respondent was in a classic
“whipsaw” situation because petitioners deducted the premium
payments as alimony, and Ms. Marten failed to include the premium
payments in income. In such a case, the Commissioner is
substantially justified in taking inconsistent positions to
protect the revenue. We therefore conclude that petitioners are
not a prevailing party within the meaning of section 7430.
Accordingly, we hold that petitioners are not entitled to an
award of administrative or litigation costs.
To reflect the foregoing,
An appropriate order
will be issued denying the
motion for costs, and
decisions will be entered.
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Last modified: May 25, 2011