- 31 -
Respondent does not object to the reasonableness of the costs
petitioner claims for the services of legal and contract
assistants that were charged to her individual account.
Consequently, we award petitioner those costs of $940.22
4. Allocation of Group Fees
We next decide whether the attorney’s fees and costs for
petitioner’s share of the group fees are reasonable and were
reasonably allocated among petitioner and the other Hoyt investor
clients. Section 7430(a) authorizes an award of reasonable
litigation costs incurred in connection with a court proceeding
brought by or against the United States with respect to the
determination, collection, or refund of any tax. In order for
costs, including attorney’s fees, to qualify as reasonable
litigation costs, they must come within the relevant definition,
sec. 7430(c)(1), and they must be incurred in connection with a
qualifying proceeding.
Petitioner’s attorneys represent many Hoyt investors. It is
not surprising or unreasonable that they would perform certain
legal work for the common benefit of similarly situated clients.
22This figure includes $615 for legal assistants and $325
for contract assistance.
Only fees for the services of an individual who is admitted
to practice before this Court or the Internal Revenue Service may
be awarded as attorney’s fees. Sec. 7430(c)(3)(A). We award
fees for work performed by legal assistants, therefore, as costs
rather than as attorney’s fees. See Fields v. Commissioner, T.C.
Memo. 2002-320; O’Bryon v. Commissioner, T.C. Memo. 2000-379.
Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 NextLast modified: May 25, 2011