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Service shall be treated as fees for the services of an attorney
for purposes of section 7430(c)(1) and (2). The clear statutory
provision requires that fees claimed by nonlawyers who are
authorized to practice before the Internal Revenue Service are
subject to the same limitations applicable to attorney's fees.
From a review of this record, it is uncontroverted that Mr.
Harris fits within section 7430(c)(3). Mr. Harris, who is a
C.P.A., represented petitioner as well as other taxpayers before
the IRS. As an individual who is authorized to practice before
the IRS, his fees are to be treated as the fees of an attorney.
As such, the fees paid or incurred for Mr. Harris' professional
services are subject to the same limitations under section
7430(c)(1)(B)(iii) as those applicable to the attorney in this
case. Similarly, Mr. Harris has not shown a special factor which
would warrant a departure from the statutory cap.
In summary, we hold that petitioner is entitled to an award
of litigation costs in the amount of $6,656 with respect to the
legal fees paid or incurred for services provided by Mr. Urquhart
at the limited rate set forth in section 7430(c)(1)(B)(iii),
adjusted for inflation. Petitioner is also entitled to an award
of costs of $365.21 with respect to Mr. Urquhart's out-of-pocket
expenses. Finally, we hold that petitioner is entitled to an
award of litigation costs for the accountant's fees paid or
incurred for services provided by Ms. Zimmerman and Mr. Harris,
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