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section 7430 and Rule 231.1 The issue is whether petitioner is
entitled to recover $16,5222 for expenses incurred in litigating
his Federal income tax liability for 2001. We hold that he is
not.
Background
The underlying facts of this case are set out in detail in
Allemeier v. Commissioner, T.C. Memo. 2005-207 (Allemeier I). We
summarize the factual and procedural background briefly to rule
on the instant motion. Petitioner resided in Pacific Grove,
California, when he filed the petition.3
On a Federal tax return for 2001, petitioner claimed
business expense deductions for a master’s degree in business
administration (MBA) and other expenses related to his work for
Selane Products (the company). Respondent disallowed the expense
deductions in a deficiency notice dated October 1, 2003, and
determined that petitioner was liable for an accuracy-related
penalty.
1All section references are to the Internal Revenue Code in
effect for the year at issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure, unless otherwise
indicated.
2Petitioner alternatively claims a lower litigation expense
amount of $15,233.28, which he computed based upon the ratio of
deductions granted versus deductions denied (92.2 percent of
$16,522 equals $15,233.28).
3Petitioner has resided in Las Vegas, Nev., since August
2004.
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