Helen E. Foy - Page 11

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          contained in petitioner’s affidavit, on or before January 31,               
          2005.                                                                       
               Although petitioner did not submit the requested documents             
          before January 7, 2005, respondent submitted a supplemental                 
          response, which we filed on January 28, 2005.  On February 7,               
          2005, we received and filed petitioner’s motion for leave to file           
          supplemental declaration supporting petitioner’s motion for                 
          litigation and administrative costs out of time, which we                   
          granted.  On February 9, 2005, we 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 the common accounts that were computed              
          using an hourly rate of $195 for two of petitioner’s attorneys.             
                                     Discussion                                       
               Section 7430(a) authorizes the award of reasonable                     
          administrative and litigation costs to the prevailing party in              
          administrative or 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                   






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