11
$75. Accordingly, we apply the $75 hourly rate, adjusted for
increases in the cost of living. Sec. 7430(c)(1)(B)(iii).
b. Adjustment of $75 Limit for Increases in the Cost
of Living From 1986
We use the Consumer Price Index (CPI) for all urban
consumers to adjust the $75 hourly limit for increases in the
cost of living. Powers v. Commissioner, 100 T.C. at 491; Cassuto
v. Commissioner, 93 T.C. 256, 273 (1989), affd. in part and revd.
in part 936 F.2d 736 (2d Cir. 1991).
We have held that 1981 is the appropriate base year for
calculating cost of living increases under section
7430(c)(1)(B)(iii). Bayer v. Commissioner, 98 T.C. 19, 23
(1992); Cassuto v. Commissioner, supra at 269. However, the U.S.
Court of Appeals for the Ninth Circuit, to which this case is
appealable, has held that the appropriate base year for
calculating cost of living increases is 1986. Huffman v.
Commissioner, 978 F.2d 1139, 1151 (9th Cir. 1992), affg. in part
and revg. in part T.C. Memo. 1991-144. We follow that holding
here. Golsen v. Commissioner, 54 T.C. 742, 756-758 (1970), affd.
445 F.2d 985 (10th Cir. 1971).
In addition to attorney's fees, petitioner incurred
litigation costs of $2,482.50. Respondent does not argue that
the amount of litigation costs claimed by petitioner is
unreasonable except for the hourly rate issue just decided. We
treat this as respondent's concession that the number of hours
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