T.C. Memo. 2002-253
UNITED STATES TAX COURT
CHARLES B. OWENS AND SALLY L. OWENS, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 672-01. Filed October 3, 2002.
R determined a deficiency in tax, and an
accompanying accuracy-related penalty, attributable to
Ps’ failure to account for discharge of indebtedness
income in 1994. Ps filed a petition for
redetermination, and R subsequently conceded the entire
case. Ps seek recovery of administrative and
litigation costs in the amount of $10,978.74 pursuant
to sec. 7430, I.R.C.
1. Held: R’s position with respect to the
discharge of indebtedness issue was substantially
justified within the meaning of sec. 7430(c)(4)(B)(i),
I.R.C.
2. Held, further, R’s position with respect to
the penalty issue was not substantially justified
within the meaning of sec. 7430(c)(4)(B)(i), I.R.C.
3. Held, further, Ps are entitled to recover
costs in the amount of $1,449.58.
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