- 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.]Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011