19
for services ($110) indexed from 1996 to 1997 is $113. Human v.
Commissioner, T.C. Memo. 1998-65. Thus, Shannahan's allowable
fee for 1997 is $110.
2. Whether a Special Factor Is Present
We next decide whether a special factor is present that
justifies an award of attorney's fees at a rate higher than $110
per hour. Sec. 7430(c)(1)(B)(iii). Petitioner contends that the
issues involved in this case were very complex and that
petitioner's counsel's expertise warrants an award of fees at a
rate higher than $110. We disagree.
The prevailing hourly rate in an area, and the fact that no
attorney would have performed the work for $110 an hour, are not
special factors under section 7430(c)(1)(B)(iii). Cozean v.
Commissioner, 109 T.C. 227 (1997); Cassuto v. Commissioner, 93
T.C. 256, 269 (1989), affd. in part, revd. in part and remanded
on other issues 936 F.2d 736 (2d Cir. 1991); see Pierce v.
Underwood, 487 U.S. 552 (1988). Tax expertise of a taxpayer’s
lawyer alone is not a special factor under section
7430(c)(1)(B)(iii). Cassuto v. Commissioner, 936 F.2d at 743;
see Bode v. United States, 919 F.2d 1044, 1050 (5th Cir. 1990);
Cozean v. Commissioner, supra at 232-233. We conclude that
petitioner has not shown that any special factor is present which
warrants an increase in the $110 maximum hourly rate.
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