- 17 - listed on the itemized statement to be reasonable in amount. Therefore, we award 80 percent of these hours.11 3. Additional Attorney's Fees Petitioners also requested an additional 14.5 hours of attorney's fees which were not listed on the itemized statement. Petitioners presented no detailed explanation of the services provided during these hours. We shall not award fees for these hours. Rule 231(d); Powers v. Commissioner, 100 T.C. at 492. 4. Paralegal Fees This Court has awarded fees for law clerks and paralegals. Powers v. Commissioner, 100 T.C. at 493. In our discretion, we may decide the appropriate hourly rate for paralegal's and law clerk's fees. See id. (applying a single hourly rate of $50). We believe that a rate of $65 per hour for paralegals is reasonable and award petitioners paralegal's fees at that rate.12 Petitioners' paralegal billed 32.8 hours between November 8, 1995, and June 9, 1997. Four-tenths (0.4) of 1 hour, billed on 11 Respondent argues that petitioners incurred additional and unnecessary expenses for their attorney's travel to and from the trial. The attorney lived and worked in Florida, and the trial was held in California. We do not believe that it is unreasonable for taxpayers to hire nonlocal tax counsel. This is especially true in this case because petitioners' attorney was the attorney of record in Butts v. Commissioner, T.C. Memo. 1993- 478, and Smithwick v. Commissioner, T.C. Memo. 1993-582. 12 Respondent's argument that the paralegal's rate is substantially close to the statutory limit allowable for attorneys is unpersuasive--this is especially true after adjusting the statutory limit upwards for increases in the cost of living.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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