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of establishing that respondent’s position was substantially
justified and (2) that petitioners are not the prevailing party
under section 7430(c)(4) with respect to each such matter.9
We next address respondent’s position for purposes of
section 7430(c)(4)(A) with respect to the section 6662(a) deter-
mination to the extent that determination imposed an accuracy-
related penalty on the respective portions of the underpayment
for petitioners’ taxable year 2002 (2002 underpayment) that were
attributable to the $622 interest determination and the $16
Travelers Prop. determination. For the reasons set forth above,
on the record before us, we find (1) that respondent has met
respondent’s burden under section 7430(c)(4)(B)(i) of establish-
ing that respondent’s position was substantially justified and
(2) that petitioners are not the prevailing party under section
7430(c)(4) with respect to the section 6662(a) determination to
the extent that determination imposed an accuracy-related penalty
on such respective portions of the 2002 underpayment.10
We next address respondent’s position for purposes of
section 7430(c)(7)(A) with respect to the $21,267 gross proceeds
determination. The Court has held that “whenever there is a
9Since we have found that petitioners are not the prevailing
party under sec. 7430(c)(4), we need not, and shall not, address
any of the other requirements in sec. 7430 that petitioners must
satisfy in order to be entitled to litigation costs under sec.
7430(a).
10See supra note 9.
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