Amilu S. Rothhammer, formerly Amilu S. Martin - Page 2

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          74302 and Rule 231.3  After concessions, the sole issue for                 
          decision is whether respondent's position in the underlying                 
          proceeding was substantially justified.  We hold that it was.               
          Thus, Martin is not entitled to an award of litigation costs.               
               The parties submitted memoranda and affidavits supporting              
          their positions.  We decide the motion based on those memoranda             
          and affidavits.  Neither party requested a hearing.  We conclude            
          that a hearing is not necessary to decide this motion.  See Rule            
          A.   Petitioner and Martin                                                  
               Petitioner Amilu S. Rothhammer (Rothhammer), formerly Amilu            
          S. Martin, lived in Colorado Springs, Colorado, and Martin lived            
          in Suffolk, Virginia, when the petition was filed.  Rothhammer              
          and Martin invested in the Elektra/Hemisphere tax shelter in the            
          early 1980's and deducted amounts based on those investments.               

               2  Section references are to the Internal Revenue Code in              
          effect for the years in issue.  References to sec. 7430 are to              
          that section as amended by sec. 1551 of the Tax Reform Act of               
          1986, Pub. L. 99-514, 100 Stat. 2085, 2752, effective for                   
          proceedings which commenced after Dec. 31, 1985.  A “proceeding”            
          under sec. 7430 commences when the petition is filed.  See Maggie           
          Management Co. v. Commissioner, 108 T.C. 430, 438 (1997).  The              
          petition was filed on Sept. 6, 1988.  The amendments to sec. 7430           
          made by sec. 6239(a) of the Technical and Miscellaneous Revenue             
          Act of 1988, Pub. L. 100-647, 102 Stat. 3342, 3743, do not apply            
          here because they are first effective for proceedings commencing            
          after Nov. 10, 1988.                                                        
               3  Rule references are to the Tax Court Rules of Practice              
          and Procedure.                                                              

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