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definition of “position of the United States” set forth in
section 7430(c)(7). Taken as a whole, section 7430 refers
to administrative proceedings separately from judicial
proceedings, and it provides for the possibility that the
United States can take two positions, one in the
administrative proceedings and another in the judicial
proceedings, each of which must be separately evaluated.
See Huffman v. Commissioner, supra. We do not dispense
with the bifurcated approach required by section 7430 based
upon the facts of the case. See Kenney v. United States,
supra; Huffman v. Commissioner, supra.
The estate also argues that respondent’s performance
did not improve after a petition was filed. According to
the estate, respondent lost the administrative file and
made “numerous” requests for extension to file an answer.
As we see it, respondent made one extension request and
made a full concession, before filing an answer, in a
second extension request filed 92 days after the petition.
As stated above, we believe that respondent’s position in
these judicial proceedings was reasonable.
For the foregoing reasons,
Petitioner’s motion for
litigation costs will be denied.
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