- 7 - filed the decision as a stipulation of settled issues, and filed petitioner’s motion. Discussion Under section 7430, a taxpayer may be awarded a judgment for reasonable administrative and litigation costs if the taxpayer establishes that he was the prevailing party, unless the Commissioner establishes that the Commissioner’s position was substantially justified. Sec. 7430(c)(4)(A) and (B). We review the Commissioner’s position as of the earlier of the date of the receipt by the taxpayer of the notice of decision by the Office of Appeals or the date of the notice of deficiency to determine whether the Commissioner was substantially justified with respect to the recovery of administrative costs. Sec. 7430(c)(7)(B). In deciding the merits of a motion for litigation costs, we consider the reasonableness of the Commissioner’s position from the date the answer to the petition was filed. Sec. 7430(c)(7)(A); Bertolino v. Commissioner, 930 F.2d 759, 761 (9th Cir. 1991). We consider the reasonableness of each of these positions separately. Huffman v. Commissioner, 978 F.2d 1139, 1144-1147 (9th Cir. 1992), affg. in part, revg. in part and remanding on other issues T.C. Memo. 1991-144. Whether the Commissioner’s position was substantially justified turns on a finding of reasonableness, based upon all the facts and circumstances, as well as the legal precedentsPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011