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respondent’s position for purposes of section 7430(c)(7)(A) is
that set forth in the answer. See id. With respect to petition-
ers’ alleged capital gain issue and petitioners’ alleged capital
loss issue, respondent’s position for purposes of section
7430(c)(7)(A) is that set forth in respondent’s pretrial memoran-
dum.8
We first address respondent’s position for purposes of
section 7430(c)(7)(A) with respect to the $622 interest determi-
nation, the $16 Travelers Prop. determination, petitioners’
alleged capital gain issue, and petitioners’ alleged capital loss
issue. In the Court’s Opinion, the Court held in favor of
respondent, and against petitioners, with respect to each of
those matters. On the record before us, we find (1) that respon-
dent has met respondent’s burden under section 7430(c)(4)(B)(i)
8Petitioners did not raise petitioners’ alleged capital gain
issue and petitioners’ alleged capital loss issue until Dec. 12,
2005, when respondent received petitioners’ 2002 amended return.
As a result, respondent was not able to take a position with
respect to either of those issues in the answer that respondent
filed on Sept. 16, 2004. In respondent’s pretrial memorandum,
respondent indicated that if the Court were to rule that peti-
tioners’ 2002 amended return is admissible into evidence, a trial
would be necessary with respect to the issues raised therein.
However, respondent did not elaborate further in respondent’s
pretrial memorandum. At trial, respondent made clear that
respondent disagreed with petitioners’ claims regarding petition-
ers’ alleged capital gain issue and petitioners’ alleged capital
loss issue. However, respondent did not elaborate further. It
was only on brief that respondent gave reasons in support of
respondent’s position in respondent’s pretrial memorandum that
petitioners are not entitled to the respective increases in
short-term capital gains and long-term capital losses claimed in
petitioners’ 2002 amended return.
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