- 18 -
Since the penalty equaled 20 percent of the alleged underpayment
attributable to the discharge of indebtedness issue, the ratio of
nonrecoverable costs to recoverable costs is 5:1. Applying that
ratio to petitioners’ eligible costs of $8,697.49, we determine
that petitioners are entitled to recover $1,449.58.
IV. Summary
We find that (1) respondent’s position with respect to the
discharge of indebtedness issue was substantially justified,
(2) respondent’s position with respect to the imposition of the
accuracy-related penalty was not substantially justified, and
(3) the amount of petitioners’ recoverable costs allocable to the
penalty issue is $1,449.58.
To reflect the foregoing,
An appropriate order and
decision will be entered.
13(...continued)
taxpayers prevailed in that endeavor).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Last modified: May 25, 2011