Robert T. Cozean - Page 11

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            constitute a special factor in the absence of any special                                    
            expertise or skill demanded of the attorney by the underlying                                
            proceedings.  Perales v. Casillas, supra at 1078 n.16.                                       
                  We first address petitioner's request for an award of costs                            
            relating to attorney's fees.  Although the issues presented in                               
            the notice of deficiency may have required petitioner to secure                              
            the services of a competent tax attorney, this finding does not,                             
            standing alone, demonstrate the presence of a special factor                                 
            which would justify an increased award under section 7430.                                   
            Powers v. Commissioner, supra at 183.11  In accordance with                                  
            Pierce v. Underwood, supra, we do not consider the complexity of                             
            the underlying tax issues, nor do we consider whether the fees                               
            requested by petitioner are "reasonable" in comparison to the                                


                  11  We consider the following example, provided in sec.                                
            301.7430-4(b)(3)(iii)(D), Proced. & Admin. Regs., to be                                      
            applicable in this regard.  While this regulation refers to                                  
            administrative costs, it is clear that it is also applicable to                              
            litigation costs.  Sec. 7430(c)(2)(B).                                                       
                        Taxpayer A is represented by B, a CPA and attorney with                          
                  an LL.M. Degree in Taxation with Highest Honors and who                                
                  regularly handles cases dealing with TEFRA partnership                                 
                  issues.  B represents A in a * * * proceeding involving                                
                  TEFRA partnership issues and subject to the provisions of                              
                  this section.  Assuming the taxpayer qualifies for an award                            
                  of reasonable  * * * costs by meeting the requirements of                              
                  section 7430, the amount of the award attributable to the                              
                  fees of B may not exceed the $75 per hour limitation * * *,                            
                  absent a special factor.  Under these facts alone, B is not                            
                  a specially qualified representative since even                                        
                  extraordinary knowledge of the tax laws does not constitute                            
                  distinctive knowledge or a unique and specialized skill                                
                  constituting a special factor.  [Sec. 301.7430-                                        
                  4(b)(3)(iii)(D), Proced. & Admin Regs.]                                                




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