- 14 -
Petitioners, therefore, have failed to establish that a special
factor existed which justifies an award in excess of the maximum
rate provided in section 7430(c)(1)(B)(iii).
B. Cost of Living Adjustment
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). This case, however, is appealable to the Court of
Appeals for the Ninth Circuit, and that court has held that 1986
is the appropriate base year for calculating cost of living
increases under section 7430. Huffman v. Commissioner, supra at
1151. We follow that holding here. Golsen v. Commissioner, 54
T.C. 742, 756-757 (1970), affd. 445 F.2d 985 (10th Cir. 1971).
We use the Consumer Price Index of All Urban Consumers (CPI-
U) published by the U.S. Department of Labor, Bureau of Labor
Statistics, to adjust the $75 hourly limit for increases in the
cost of living. Powers v. Commissioner, 100 T.C. at 491. We
award petitioners attorney's fees at an hourly rate not to exceed
$104.29 for 1995 and $107.37 for 1996. See Galedrige Constr.,
Inc. v. Commissioner, T.C. Memo. 1997-485.
C. Apportioning the Award
As was stated above, the Court has adopted an issue-by-issue
approach to section 7430, apportioning the requested award
between those issues for which the Commissioner was, and those
issues for which the Commissioner was not, substantially
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