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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.
927, 930 (1985). A significant factor in determining whether the
Commissioner’s position is substantially justified as of a given
date is whether, on or before that date, the taxpayer has
presented all relevant information under the taxpayer’s control
and relevant legal arguments supporting the taxpayer’s position
to the appropriate Service personnel.5 Maggie Mgmt. Co. v.
5“[A]ppropriate Internal Revenue Service personnel” are
those employees who are reviewing the taxpayer’s information or
arguments, or employees who, in the normal course of procedure
and administration, would transfer the information or arguments
to the reviewing employees. Sec. 301.7430-5(c)(1), Proced. &
Admin. Regs.
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