- 11 -
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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