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petitioner’s nonsensical arguments. Even assuming the agent
misconstrued petitioner’s books and records, it is apparent that
the records did not accurately reflect income. Further, each
time petitioner provided additional information to respondent,
recomputations were made to the proposed adjustment to income.7
D. Conclusion
We hold that petitioner is not entitled to an award of
administrative and litigation costs because respondent’s position
was substantially justified. In so holding, we have carefully
considered the remaining arguments made by the parties, and to
the extent not discussed above, we consider those arguments to be
without merit.
In order to reflect the foregoing,
An appropriate order and
decision will be entered.
7 As indicated, petitioner did not file a return for tax
year 1994. In 1999, a year after respondent filed his answer to
the petition, the parties began a yearlong process of calculating
petitioner’s gross receipts. Respondent was not unreasonable in
his initial determination or the consideration of documentation
to verify gross receipts for 1994.
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