Thomas J. Mitchell and Janice M. Mitchell - Page 3

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            primarily attributable to his determination that petitioner’s tax                          
            home was in Century City, California, rather than in Orland Park,                          
            Illinois, as petitioners asserted.  In Mitchell v. Commissioner,                           
            T.C. Memo. 1999-283, we held that petitioner’s tax home was in                             
            Orland Park, Illinois, and, accordingly, that petitioners were                             
            not liable for the resulting deficiencies or accuracy-related                              
            penalties.  Petitioners filed the instant motion with the Court                            
            shortly thereafter.                                                                        
                  We may grant petitioners’ motion if they meet the statutory                          
            requirements for an award of litigation costs.  See sec. 7430(b)                           
            and (c).  The parties agree that petitioners meet those                                    
            requirements if, and to the extent that, respondent's positions                            
            in this proceeding were not substantially justified.  Respondent                           
            advanced two positions in this case, one as to the situs of                                
            petitioner’s tax home and the other as to the applicability of                             
            the accuracy-related penalties.  We may award litigation costs to                          
            petitioners to the extent that either of those positions was not                           
            substantially justified; i.e., it did not have a reasonable basis                          
            in law and fact.  See Pierce v. Underwood, 487 U.S. 552, 563-565                           
            (1988); Swanson v. Commissioner, 106 T.C. 76, 86 (1996).  We test                          
            the justification for each position independently.  See Foothill                           
            Ranch Co. Partnership v. Commissioner, 110 T.C. 94, 97 (1998);                             
            Swanson v. Commissioner, supra at 92, 97.                                                  

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