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and, at the time the petition is filed, satisfy certain net worth
requirements. Sec. 7430(c)(4)(A). Section 7430(c)(4)(B),
however, provides that a taxpayer shall not be treated as a
prevailing party if the United States establishes that the
position of the United States in the proceeding was substantially
justified. Section 7430(c)(7)(B) states that the term “position
of the United States” means the position taken by the United
States in an administrative proceeding as of the earlier of (1)
the date of the receipt by the taxpayer of the notice of the
decision of the IRS Office of Appeals, or (2) the date of the
notice of deficiency. Respondent is not considered as having
taken any position in an administrative proceeding prior to the
issuance of an Appeals Office decision or a notice of deficiency.
See, e.g., Richardson v. Commissioner, T.C. Memo. 1991-427.
Taxpayers must, among other things, receive either a notice of
decision from the Appeals Office or a notice of deficiency to
qualify as prevailing parties in an administrative proceeding
under section 7430(c)(4). Fla. Country Clubs, Inc. v.
Commissioner, 404 F.3d 1291 (11th Cir. 2005), affg. 122 T.C. 73
(2004).
Petitioners never received a notice of deficiency from
respondent so we turn to the meaning of a notice of the decision
of the Appeals Office. A notice of decision, for purposes of
section 7430, is “the final written document, mailed or delivered
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