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establish that his position was unreasonable. Estate of Perry v.
Commissioner, 931 F.2d 1044, 1046 (5th Cir. 1991); Sokol v.
Commissioner, 92 T.C. 760, 767 (1989). However, the
Commissioner’s concession is a factor to be considered. Powers
v. Commissioner, 100 T.C. 457, 471 (1993), affd. in part, revd.
in part and remanded on another issue 43 F.3d 172 (5th Cir.
1995).
Respondent argues that petitioner should not be treated as
the prevailing party because respondent’s position was
substantially justified. The first opportunity respondent had to
take a position with respect to petitioner’s claim for innocent
spouse relief was in response to petitioner’s motion to amend the
petitions. Respondent opposed petitioner’s motion on the grounds
that the matter had been litigated for almost 20 years and that
all the issues in the matter had been resolved by agreement of
the parties in April 2003. Respondent argued that petitioner
should be bound by that agreement. After we allowed petitioner
the opportunity to amend her petitions to assert innocent spouse
relief, respondent denied petitioner’s new allegations.5
We find respondent’s initial position with respect to
petitioner’s claim for innocent spouse relief in opposing the
motion to amend to have been substantially justified. Reason
5Respondent denied petitioner’s new factual allegations for
lack of information and denied petitioner’s legal conclusions
generally.
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