- 14 -
1991-144; Maggie Mgmt. Co. v. Commissioner, 108 T.C. 430, 442
(1997).
Although respondent’s administrative and litigation
positions are often considered separately, we may consider them
together if respondent maintains the same position throughout the
administrative and litigation process. Huffman v. Commissioner,
supra at 1144-1147; Maggie Mgmt. Co. v. Commissioner, supra at
442; Livingston v. Commissioner, T.C. Memo. 2000-387. In the
present case, respondent’s position in both the notice of
determination and the answer was that petitioner’s election to
allocate the joint liability under section 6015(c) was invalid
because she had actual knowledge when she signed the returns of
any items giving rise to the deficiency that were allocable to
her spouse.
The Commissioner’s position is substantially justified if it
has a reasonable basis in both fact and law and is justified to a
degree that could satisfy a reasonable person. Huffman v.
Commissioner, supra at 1147 n.8 (citing Pierce v. Underwood, 487
U.S. 552, 565 (1988)); Maggie Mgmt. Co. v. Commissioner, supra at
443; sec. 301.7430-5(c)(1), Proced. & Admin. Regs. The
reasonableness of respondent’s position turns on the available
facts that formed the basis for the position and any legal
precedents related to the case. Maggie Mgmt. Co. v.
Commissioner, supra at 443; DeVenney v. Commissioner, 85 T.C.
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