Phillip A. O'Bryon and Cyndie W. O'Bryon - Page 31

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               For costs incurred on or before January 18, 1999, reasonable           
          administrative costs include only those costs incurred on or                
          after the earlier of (1) the date of the receipt by taxpayer of             
          the notice of decision of the IRS Office of Appeals, or (2) the             
          date of the notice of deficiency.  See sec. 7430(c)(2).                     
               Litigation costs are those incurred in connection with a               
          judicial proceeding.  See sec. 7430(a)(2), (c)(1).  Reasonable              
          litigation costs consist of reasonable court costs, the                     
          reasonable expenses of necessary expert witnesses, the reasonable           
          cost of any necessary study, analysis or report, and reasonable             
          fees paid or incurred for the services of attorneys.  See sec.              
               Rule 232(d)(1) requires that, if the parties disagree as to            
          the reasonable amount of attorney's fees, counsel for the party             
          moving for such fees and costs submit, among others, a detailed             
          summary of the time expended by each individual for whom fees are           
          sought, including a description of the nature of the services               
          performed during each period of time summarized.                            
               The billing statements, in large part, do not indicate on              
          which of the issues each of the attorneys and the paralegal                 
          worked in each time period.  Accordingly, we approximate                    
          petitioners' costs incurred in connection with the Diplomat                 
          Associates losses, bearing heavily against petitioners whose                
          inexactitude is of their own making.  See Cohan v. Commissioner,            

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