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March 17, 2000; and that Ms. Gibbons' rate was $265 on March 7,
2000.
Absent special factors, an award relating to attorney’s fees
incurred in 1998 is limited to $120 per hour; for calendar year
1999, the attorney fee award limitation under section
7430(c)(1)(B)(iii) is $120 per hour for fees incurred on or
before January 18, 1999 and $130 per hour for fees incurred after
January 18, 1999; and for fees incurred in the calendar year
2000, the attorney fee award limitation is $140 per hour. See
sec. 7430(c); Rev. Proc. 97-57, 1997-2 C.B. 584; Rev. Proc. 98-
61, 1998-2 C.B. 811; Rev. Proc. 99-42, 1999-46 I.R.B. 568.
We find that no special factor justifies awarding fees for
attorneys' services at an hourly rate greater than the statutory
limit. Accordingly, we limit Mr. Widen's and Ms. Gibbons' hourly
rate to the $120, $130, and $140 for pertinent periods. We note
that Mr. McArthur's and Mr. Newman's hourly rates were under the
statutory caps and find them reasonable.
Mr. Widen billed 1.8 hours for services provided prior to
the date of notice of deficiency, June 24, 1998. Those fees are
not recoverable. See sec. 7430(c)(2).
In late January 2000, respondent notified petitioners'
counsel that he anticipated that he would concede the Diplomat
Associates issue. By early March 2000 a final settlement had not
been reached. Respondent and petitioners included a discussion
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