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Appeals officer, after examining the documentation furnished,
sustained some of the adjustments in the statutory notice of
deficiency, but he conceded that petitioner was entitled to head
of household filing status, a dependency exemption, and the
earned income credit. The parties settled shortly thereafter.
A significant factor in determining whether the position of
the Commissioner is substantially justified as of a given date is
whether, on or before the 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 Internal Revenue Service personnel”. Sec. 301.7430-
5(c)(1), Proced. & Admin Regs.
Most of the changes to petitioner’s adjustments were based
on the Appeals officer’s determination that petitioner was
entitled to head of household filing status, child dependency
exemption and earned income credit. Petitioner did not raise any
of these legal arguments or provide the relevant documentation to
the examining agent while her returns were being examined.
Therefore, respondent’s position was not unreasonable even though
respondent eventually conceded that petitioner is entitled to
certain deductions and credits.
Petitioner alleges in her motion that respondent “refused to
deal with [her]” unless she consented to an extension of the
limitations period to assess taxes. As discussed above,
respondent made numerous attempts to “deal” with petitioner,
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