William L. Smith and Jacquelyn Smith v. United States

WISDOM, Circuit Judge:

In this case we decide whether the plaintiffs/appellants, Mr. and Mrs. William L. Smith, are entitled to recover attorney’s fees from the Internal Revenue Service. Our decision turns on whether the IRS’s appraisal of a building owned by the Smiths was “not substantially justified”. The district court examined both the Smiths’ position and IRS’s position and concluded that the Smiths had not met their burden for recovering attorney’s fees. Because we find no error in the district court’s approach, we affirm.

I

The building in question is a single-story concrete structure in…