John G. Goette, Jr. and Marian Goettee - Page 11

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         3. Petitioners are entitled to an abatement or correction                    
              of Respondent’s interest computation errors.                            
         Petitioners’ opening posttrial brief listed a number of asserted             
         errors, the most significant of which appeared to be (1)                     
         incorrect starting dates for interest computations as to all 3               
         years’ liabilities, and (2) respondent’s failure to pay interest             
         or provide offsets on account of a $40,000 settlement offer                  
         amount which respondent held for about 7 months.  In petitioners’            
         motion for reconsideration of our opinion in Goettee I, they                 
         specified about 2-1/2 months of delay periods in addition to the             
         16-1/4 months they had specified in their opening posttrial                  
         brief.  See Goettee v. Commissioner, T.C. Memo. 2004-9, issues 2,            
         3, and 4.                                                                    
              We agree with petitioners’ contention in their motion                   
         papers:                                                                      
              However, the government cannot avoid an award of                        
              litigation costs by conceding a  matter when such                       
              concession is conditioned on terms unacceptable by the                  
              other party.  See, Culpepper-Smith v. U.S.A., 50 F.                     
              Supp. 2nd 425, 430 (E.D. Pa 1999).                                      
         However, we do not determine that respondent in the instant case             
         improperly conditioned any concessions.  In evaluating the extent            
         of petitioners’ success we take into account those matters that              
         respondent conceded (whether early or late in the proceedings) as            
         well as the one contested matter as to which we held in part for             
         petitioners.                                                                 
              Petitioners point to the fact that at one point during the              





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