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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.
Specifically--
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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