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Appeals Office. Respondent and petitioners eventually reached a
settlement in September of 2000. The parties agreed that (1)
Charles purchased the winning lottery ticket on behalf of an
informal general partnership including his wife and children, and
(2) the transfer of the collection rights to the limited
partnership, under the terms of the partnership agreement,
reduced the partnership interests of each of the Rathbun children
from 14.29 percent to 13.33 percent. Consequently, the Rathbun
children in 1993 each made a gift valued at $250,000 to their
parents, but no gift tax was owed because of the available
unified credit under section 2505.
On December 8, 2000, petitioners submitted requests to
respondent for administrative costs under section 7430. Linda
Johnson and Marc Fretwell filed joint requests with their
spouses, Arlen Johnson and Dorene Fretwell. On May 27, 2003,
respondent sent separate letters to petitioners denying their
claims for administrative costs. The respective petitions in the
underlying case were filed on August 28, 2003. The cases were
then consolidated under Rule 141(a) on January 18, 2005.
Discussion
I. Standard for Summary Judgment
Rule 121(a) allows a party to move “for a summary
adjudication in the moving party’s favor upon all or any part of
the legal issues in controversy.” Rule 121(b) provides that a
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