Foothill Ranch Company Partnership, Buck Equities, Ltd., Tax Matters Partner - Page 13

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          prevailing hourly rates in the relevant area are not a special              
          factor.  Pierce v. Underwood, supra at 571-572; Powers v.                   
          Commissioner, 100 T.C. at 489.  Therefore, we conclude that                 
          petitioner is not entitled to fees in excess of the statutory               
          rate (i.e., as adjusted by increases in the cost of living) and             
          award petitioner attorney's fees at an hourly rate of $104.29 for           
          1995, $107.37 for 1996, and $109.83 for 1997.  See Huffman v.               
          Commissioner, supra at 1151 (stating that 1986 is the appropriate           
          base year for calculating cost of living increases); Galedrige              
          Constr., Inc. v. Commissioner, T.C. Memo. 1997-485 (providing the           
          rates for 1995, 1996, and 1997).                                            

                         b.  Apportioning and Awarding the Fees and Costs             
               Petitioner requests an award for 848.5 hours in fees and               
          $4,844.65 in costs.  Because petitioner failed to challenge                 
          respondent's position relating to the tax matters partner or the            
          period of assessment, petitioner may not receive an award for the           
          231.2 hours that are attributable to those issues.  Therefore,              
          petitioner is eligible to receive an award of fees based on 617.3           
          hours (i.e., 95.6 hours in 1995, 225.2 hours in 1996, and 296.5             
          hours in 1997) and $4,844.65 (paid in 1997) in costs.                       
               Accordingly, petitioner is entitled to an award of $7,674;             
          Hon Family Ventures, Ltd., is entitled to an award of $9,555; and           

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