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or ratified the filing of the petition. Respondent’s contention
that Martin authorized or ratified the filing of the petition was
based on the following facts: (1) Attorney Berg signed the
petition on Martin’s behalf; (2) correspondence to and from
Martin referred to docket No. 22961-88; (3) Rothhammer and Martin
had a case involving Elektra/Hemisphere for other years; and
(4) Berg and his law firm had filed many petitions on behalf of
Elektra/Hemisphere investors. See Martin v. Commissioner, T.C.
Memo. 2000-187.
Discussion
A. Motion for Litigation Costs
Generally, a taxpayer who has substantially prevailed in a
Tax Court proceeding may be awarded reasonable litigation costs.
See sec. 7430(a), (c). To be entitled to an award, the taxpayer
must:
1. Exhaust administrative remedies. See sec. 7430(b)(1).
Respondent concedes that Martin meets this requirement.
2. Establish that the position of the United States was
not substantially justified. See sec. 7430(c)(2)(A)(i). The
parties dispute whether Martin meets this requirement.
3. Substantially prevail with respect to the amount in
controversy. See sec. 7430(c)(2)(A)(ii)(I). Respondent concedes
that Martin substantially prevailed.
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