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Commissioner, 108 T.C. 430, 443 (1997); DeVenney v. Commissioner,
85 T.C. 927, 930 (1985). The fact that the Commissioner
eventually concedes a case does not necessarily mean that his
position was unreasonable, Sokol v. Commissioner, 92 T.C. 760,
767 (1989), but remains a fact to be considered, Powers v.
Commissioner, 100 T.C. 457, 471 (1993), affd. in part, revd. in
part and remanded on another issue 43 F.3d 172 (5th Cir. 1995).
We conclude on the basis of the facts and circumstances at
hand that respondent’s position in the administrative proceeding
was substantially justified. We believe that the Commissioner
acted reasonably in seeking and evaluating information from
petitioner and his representatives as to the correctness of the
determination reflected in the notice of deficiency. Respondent
is entitled to maintain his position until adequate
substantiation, including oral testimony, is received and
verified. Sokol v. Commissioner, supra at 765. We believe that
it was reasonable for the Commissioner to not have conceded the
relevant portion of his determination until the meeting between
Keegan, Ho, and Farr.
All arguments of the parties have been considered. Those
arguments not discussed herein have been rejected as without
merit. Accordingly,
Decision will be entered
for respondent.
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