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administrative or court proceeding. Sec. 7430(b)(1), (3).
Unless the taxpayer satisfies all of the section 7430
requirements, we do not award costs. Minahan v. Commissioner, 88
T.C. 492, 497 (1987).
Section 7430(c)(4)(A) and (B)(i) provides that a taxpayer is
a prevailing party if (1) the taxpayer substantially prevailed
with respect to the amount in controversy or the most significant
issue or set of issues, (2) the taxpayer meets the net worth
requirements of 28 U.S.C. section 2412(d)(2)(B) (2000), and (3)
the Commissioner’s position in the administrative or court
proceeding was not substantially justified. See also sec.
301.7430-5(a), Proced. & Admin. Regs. Although the taxpayer has
the burden of proving that the taxpayer meets requirements (1)
and (2), supra, the Commissioner has the burden of proving that
his position was substantially justified. See sec.
7430(c)(4)(B)(i); Rule 232(e).
Respondent concedes that petitioner exhausted the available
administrative remedies as required by section 7430(b)(1), that
petitioner did not unreasonably protract the administrative and
court proceedings as required by section 7430(b)(3), and that
petitioner meets the net worth requirements of 28 U.S.C. section
2412(d)(2)(B). In addition, respondent does not dispute that
petitioner substantially prevailed with respect to the amount in
controversy. Respondent alleges, however, that his
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