Helen E. Foy - Page 28

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                             Time      Hourly                                         
         Attorney/Item         expended     rate     Total cost                       
         Wendy Pearson       8.8 hours  $195                $1,716.00                 
         Terri Merriam       2.9 hours   195                565.50                    
         Jennifer Gellner         10.5 hours     150        1,575.00                  
         Jennifer Gellner         2.1 hours      110        231.00                    
         Legal assistant        10.3 hours       75         772.50                    
         Contract assistance      10.0 hours     50         500.00                    
         Tax Court filing fee       --           --         60.00                     
         Postage                  --             --         5.84                      
         Online research           --            --         12.00                     
         Share of group fees                                                          
              and costs1              --         --          5,916.20                 
                   Total fees and costs                     11,354.04                 
              1The amount petitioner claims for her share of the group fees           
         and costs represents charges to separate accounts for two groups             
         of Hoyt investor clients and includes attorney’s fees billed at              
         an hourly rate of $195 for some of petitioner’s attorneys and the            
         costs of contract assistance, online research, postage, copies,              
         and the attorneys’ hotels, meals, and parking as well as the                 
         costs of work performed by legal assistants.                                 
              2.   The Parties’ Arguments                                             
              Respondent contends that the costs petitioner claims are                
         unreasonable in that the hourly rate charged by some of                      
         petitioner’s attorneys exceeds $150 per hour, and petitioner has             
         not shown that any of the three special factors enumerated in                
         section 7430(c)(1)(B)(iii) apply.  Respondent further argues that            
         costs petitioner claims for her share of the group fees are not              
         reasonable because (1) the method of billing does not properly               
         account for the time expended or hourly rate at which the work               
         was performed, and (2) the fees were charged for work that                   
         contributed to the resolution of clients’ cases other than                   
         petitioner’s and, therefore, were not “incurred in connection                





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