- 9 -
100 T.C. 457, 471 (1993), affd. in part, revd. in part and
remanded on another issue 43 F.3d 172 (5th Cir. 1995).
As relevant herein, the position of the United States that
must be examined in light of the substantial justification
standard with respect to the recovery of administrative costs is
the position taken by the Commissioner as of the date of the
notice of deficiency. See sec. 7430(c)(7)(B).
In order to decide whether the Commissioner's position was
substantially justified we must review the substantive merits of
the case.
Reasonable Basis In Fact
In Rev. Rul. 90-93, 1990-2 C.B. 33, respondent announced the
position that a person described in section 3121(d)(3), commonly
referred to as a "statutory employee", is "not an employee for
purposes of sections 62 and 67." Such persons may properly
reflect business income and expenses in full on Schedule C in
calculating adjusted gross income under section 62(a)(1).
Persons who are employees for purposes of sections 62 and 67 have
their miscellaneous deductions limited as provided by section
67(a).
Petitioners do not appear to suggest that respondent applied
the wrong legal standard in taking a position denying their
deduction on Schedule C of expenses for the business of "TV Sales
Executive" under the business name, "WZTV & WNAB". A reading of
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011