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MEMORANDUM OPINION
GERBER, Judge: In a prior opinion,1 we held that the
estates of John and Sarah Baird were entitled to use a 60-percent
discount in valuing their respective fractional interests in 16
tracts of realty. Both estates moved for litigation and
administrative costs under section 7430.2 The Estate of John L.
Baird is seeking litigation and administrative costs in amounts
of at least $142,612.47 and $622.50, respectively. The Estate of
Sarah W. Baird is seeking litigation and administrative costs in
amounts of at least $141,191.58 and $592.40, respectively.3
Subsections (b) and (c) of section 7430 provide that
prevailing parties, in order to recover litigation costs, must
meet the following requirements: (1) They exhausted available
administrative remedies; (2) they substantially prevailed in the
controversy; (3) the position of the United States in the
proceeding was not substantially justified; (4) they meet certain
net worth requirements; (5) they did not unreasonably protract
1 Estate of Baird v. Commissioner, T.C. Memo. 2001-258. The
findings in that opinion and the parties’ stipulation of facts
are incorporated by this reference.
2 All section references are to the Internal Revenue Code,
as modified and in effect for the periods under consideration.
Rule references are to the Tax Court’s Rules of Practice and
Procedure.
3 In the circumstances of these consolidated cases, there
was no need for an evidentiary hearing. We rule on the estates’
motion for litigation costs based on the existing record and the
parties’ submissions. See Rule 232(a)(1) and (2).
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