10
as new facts came to light); Williford v. Commissioner, T.C.
Memo. 1994-135 (the Commissioner's valuation position was
unreasonable where the Commissioner was slow to seek an
appraisal, did not contact the taxpayer's valuation expert, and
did not modify her position after receiving the Commissioner's
expert's report 42 days before trial). Respondent's position in
the instant case is weaker than the Commissioner's position in
Frisch v. Commissioner, supra, because here respondent's expert
substantially agreed with petitioner's expert regarding the value
of Grecco's stock. We conclude that respondent's position did
not have a reasonable basis in fact or law.
3. Amount of Reasonable Attorney's Fees and Litigation
Costs
Petitioner seeks an award of litigation costs of $44,737.25,
comprising $42,254.75 for attorney's fees and $2,482.50 for out-
of-pocket expenses.
a. Hourly Rate
Respondent argues that the maximum hourly rate for
attorney's fees is $75, adjusted for increases in the cost of
living, sec. 7430(c)(1)(B)(iii), and that a higher limit should
not apply absent a showing that a special factor justifies a
higher rate, sec. 7430(c)(1)(B)(iii); Stieha v. Commissioner, 89
T.C. 784, 792 (1987).
Petitioner does not argue that special factors are present
that warrant payment of attorney's fees at a rate higher than
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