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As an initial matter we note that, like section 7430, the
Equal Access to Justice Act (EAJA), codified at 5 U.S.C. section
504 and 28 U.S.C. section 2412 (1994), allows courts to award
attorney's fees and other expenses to a prevailing party in
actions against the Government. At times we will draw on the
more extensive case law under the EAJA in order to interpret an
analogous provision in section 7430. Kenagy v. Unites States,
942 F.2d 459 (8th Cir. 1991) (where wording is consistent, courts
read the EAJA and sec. 7430 in harmony); United States v.
Balanced Fin. Management, Inc., 769 F.2d 1440, 1451 n.12 (10th
Cir. 1985); Powell v. Commissioner, 91 T.C. 673, 682 (1988),
revd. on another issue 891 F.2d 1167 (5th Cir. 1990).
Meaning of "Paid or Incurred"
By virtue of its requirement that attorney's fees have been
"incurred" by the party, section 7430 differs from some other
fee-shifting statutes. For example, unlike the Civil Rights
Attorneys Fees Awards Act of 1976, which provides for allowance
of "a reasonable attorney's fee as part of the costs", section
7430 is more narrowly drawn and requires that to receive an
award, attorney's fees must have been paid or incurred. Frisch
v. Commissioner, 87 T.C. 838, 846 (1986). This is an important
distinction. To be eligible for an award of fees under section
7430, petitioner must be able to show that she has paid those
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