Angela Matthews - Page 12

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            petitioners' counsel acted in bad faith in multiplying the                                
            proceedings unreasonably and vexatiously.                                                 
                  The question presented then is the extent to which counsel                          
            will be penalized for asserting such frivolous claims.                                    
            Attorney's fees awarded under section 6673(a)(2) are to be                                
            computed by multiplying the number of excess hours reasonably                             
            expended on the litigation by a reasonable hourly rate.  The                              
            product is known as the "lodestar" amount. * * * [Harper v.                               
            Commissioner, 99 T.C. 533, 549 (1992).]                                                   
            See also Pennsylvania v. Delaware Valley Citizens' Council for                            
            Clean Air, 478 U.S. 546, 563 (1986).  The standards of rule 11 of                         
            the Federal Rules of Civil Procedure are applicable in                                    
            determining the hourly rate to charge counsel for respondent's                            
            excess attorney time.  Harper v. Commissioner, supra at 550.                              
                  The hourly rate properly charged for the time of a                                  
                  government attorney is the "amount to which attorneys                               
                  of like skill in the area would typically be entitled                               
                  for a given type of work on the basis of an hourly rate                             
                  of compensation". [Harper v. Commissioner, supra at 551                             
                  (citing United States v. Kirksey, 639 F. Supp. 634, 637                             
                  (S.D.N.Y. 1986); citations omitted.]                                                
                  This Court has inherent authority to reduce or increase the                         
            number of hours in respondent's accounting, and to adjust the                             
            rate to be applied in determining the lodestar amount.  Fed. R.                           
            Civ. P. 11; Harper v. Commissioner, supra at 550 n.13.                                    
                  Respondent submitted itemized affidavits of estimated excess                        
            attorney and paralegal time spent on this case with a fee                                 
            schedule.  Specifically, respondent submitted affidavits                                  
            detailing the time spent on this case as follows:                                         

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