Estate of Baird v. Commissioner

E. GRADY JOLLY,' Circuit Judge:

The Tax Court held that the taxpayers, the estates of a deceased husband and wife, were not entitled to an award of administrative and litigation costs because the Commissioner of Internal Revenue (“IRS”) was substantially justified in taking the position that the only discount allowable when valuing the decedents’ non-controlling fractional interests in Louisiana timberland was the cost of partitioning the property. The taxpayers appeal, contending that the IRS did not meet its burden of proving that its position was substantially justified. We conclude that…