Michael J. Downing and Sandra M. Downing - Page 32

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          penalties, and not with respect to the deficiencies.  The excess            
          of the civil fraud penalties over the negligence penalties is               
          about one-third of the total of the civil fraud penalties and the           
          deficiencies determined against Sandra.  We conclude that one-              
          third of the costs incurred in connection with the instant motion           
          is properly allowable to Sandra in connection with the penalties            
          issue.                                                                      
               The parties are to calculate the amounts so awardable in               
          connection with the computations under Rule 155.  They are                  
          cautioned to avoid “penny-wise and pound-foolish” disputes on               
          this matter.  See, e.g., Dang v. Commissioner, 259 F.3d 204, 206            
          (4th Cir. 2001), affg. an unreported order and decision of this             
          Court entered July 21, 2000; Goettee v. Commissioner, T.C. Memo.            
          2003-43 (issue II, B. 1, relating to a dispute, in an interest              
          abatement case, as to whether $2.44 had been paid on May 19,                
          1985, or May 19, 1986).                                                     
          E.  Qualified Offer                                                         
               Sandra contends that, because she submitted a qualified                
          offer within the meaning of section 7430(g) and the judgment as             
          to her was less than the amount of the offer, she is the                    
          prevailing party under section 7430(c)(4)(E).  See supra note 4.            
          Respondent contends that “Petitioner’s letter * * * was not a               
          qualified offer, because it was not designated at the time it was           
          made as a qualified offer for purposes of section 7430(g).”                 






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