Estate of William Davidson Merchant, Iii, Deceased, Margaret Norling Merchant, Administrator v. Commissioner Internal Revenue Service

CANBY, Circuit Judge:

The estate of William Davidson Merchant III 1 appeals from a decision of the Tax Court denying litigation costs under 26 U.S.C. § 7430. We affirm.

BACKGROUND

This appeal has interesting origins. In 1981, Merchant’s residence was searched without a warrant by state officers, ostensibly on the theory that Merchant, as a probationer, had consented to the search as a condition of probation. The search was initiated after neighbors had reported gunfire in the area. 2 The state officers conducting the search discovered more than $300,000 worth of cash, 80 guns, and evidence of an…