- 17 -
listed on the itemized statement to be reasonable in amount.
Therefore, we award 80 percent of these hours.11
3. Additional Attorney's Fees
Petitioners also requested an additional 14.5 hours of
attorney's fees which were not listed on the itemized statement.
Petitioners presented no detailed explanation of the services
provided during these hours. We shall not award fees for these
hours. Rule 231(d); Powers v. Commissioner, 100 T.C. at 492.
4. Paralegal Fees
This Court has awarded fees for law clerks and paralegals.
Powers v. Commissioner, 100 T.C. at 493. In our discretion, we
may decide the appropriate hourly rate for paralegal's and law
clerk's fees. See id. (applying a single hourly rate of $50).
We believe that a rate of $65 per hour for paralegals is
reasonable and award petitioners paralegal's fees at that rate.12
Petitioners' paralegal billed 32.8 hours between November 8,
1995, and June 9, 1997. Four-tenths (0.4) of 1 hour, billed on
11 Respondent argues that petitioners incurred additional
and unnecessary expenses for their attorney's travel to and from
the trial. The attorney lived and worked in Florida, and the
trial was held in California. We do not believe that it is
unreasonable for taxpayers to hire nonlocal tax counsel. This is
especially true in this case because petitioners' attorney was
the attorney of record in Butts v. Commissioner, T.C. Memo. 1993-
478, and Smithwick v. Commissioner, T.C. Memo. 1993-582.
12 Respondent's argument that the paralegal's rate is
substantially close to the statutory limit allowable for
attorneys is unpersuasive--this is especially true after
adjusting the statutory limit upwards for increases in the cost
of living.
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