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Commissioner, 92 T.C. 192, 197 (1989), affd. 905 F.2d 241 (8th
Cir. 1990).6 Respondent concedes that petitioner has exhausted
the administrative remedies available, has substantially
prevailed with respect to the amount in controversy,7 and did not
unreasonably protract the proceedings.
I. Whether the Position of the United States Was Substantially
Justified
In order to obtain reasonable litigation costs in this case,
petitioner must establish that respondent’s position in the court
proceeding was not substantially justified. We apply the “not
substantially justified” standard as of the date that the United
States takes its position in the case. For purposes of a court
proceeding, the position of the United States is that which is
set forth in the answers to the petitions. Grant v.
Commissioner, supra at 952; Maggie Mgmt. Co. v. Commissioner, 108
T.C. 430, 442 (1997).
6In the Taxpayer Bill of Rights 2, Pub. L. 104-168, sec.
701(b), 110 Stat. 1452, 1463 (1996), sec. 7430(c)(4) was amended
to require the Government to establish that its position was
substantially justified. This amendment is effective for
proceedings commenced after July 30, 1996. The petitions in this
case were filed before July 30, 1996; thus, the burden remains on
petitioner. Maggie Mgmt. Co. v. Commissioner, 108 T.C. 430, 438-
441 (1997).
7Although respondent concedes that petitioner has
substantially prevailed with respect to the amounts in
controversy, he disputes that petitioner has substantially
prevailed with respect to all her arguments and contentions.
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