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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 precedents
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