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On January 10, 2005, we received and filed petitioner’s
supplemental declaration, which contained billing records for
fees and costs petitioner’s attorneys had charged to common
accounts for two separate groups of Hoyt investor clients. The
billing records provided specific information about the nature of
the work performed for the benefit of both groups of Hoyt
investor clients and included charges to common accounts that
were computed using an hourly rate of $195 for two of
petitioner’s attorneys. On January 27, 2005, we received and
filed respondent’s supplemental response to petitioner’s
supplemental declaration.
Discussion
Section 7430(a) authorizes the award of reasonable
litigation costs to the prevailing party in court proceedings
brought by or against the United States in connection with the
determination of income tax. In addition to being the prevailing
party, in order to receive an award of reasonable litigation
costs, a taxpayer must exhaust administrative remedies and not
unreasonably protract the court proceedings. Sec. 7430(b)(1),
(3). Unless the taxpayer satisfies all of the section 7430
requirements, we do not award costs. Minahan v. Commissioner, 88
T.C. 492, 497 (1987).
Section 7430(c)(4)(A) and (B)(i) provides that a taxpayer is
a prevailing party if (1) the taxpayer substantially prevailed
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