- 14 -
was substantially justified.5 Coastal Petroleum Refiners, Inc.
v. Commissioner, supra at 688-689; see also Corkrey v.
Commissioner, 115 T.C. 366, 375 n.5 (2000) (citing McDaniel v.
Commissioner, T.C. Memo. 1993-148, for the propositions that (1)
whenever there is a factual determination, the Commissioner is
not obliged to concede a case until the Commissioner receives the
necessary documentation to prove the taxpayer’s contentions, and
(2) the Commissioner must be given reasonable time to analyze the
documents and make adjustments after receiving the documents).
From June 13, 2003 (the date of the notice of deficiency),
through September 11, 2003 (the date upon which petitioner filed
her petition), respondent’s position with respect to all issues
in the administrative proceeding was substantially justified.
See sec. 7430(c)(4)(B); sec. 301.7430-5(c)(1), Proced. & Admin.
Regs. As a result, we hold that petitioner is not eligible to
receive an award of reasonable administrative costs under section
7430(a)(1).
5 Costs petitioner incurred (1) in connection with the
preparation and filing of her Tax Court petition and (2) after
the Sept. 11, 2003, filing of the petition would be litigation
costs rather than administrative costs. Sec. 301.7430-4(c)(3)
and (4), Example (2), Proced. & Admin. Regs. As we have
previously held, petitioner is ineligible for an award of
reasonable litigation costs because of her failure to exhaust
administrative remedies as required by sec. 7430(b)(1).
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