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Respondent does not object to the reasonableness of the costs
petitioner claims for the services of legal assistants, contract
assistance, filing fees, postage, and online research that were
charged to her individual account. Consequently, we award
petitioner those costs in the amount of $1,350.34.22
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
administrative and litigation costs incurred in connection with
an administrative or 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 or administrative
costs, they must come within the relevant definitions, sec.
7430(c)(1) and (2), and they must be incurred in connection with
a qualifying proceeding.
22This figure includes the following costs: $772.50 for
legal assistants, $500 for contract assistance, $60 Tax Court
filing fee, $5.84 for postage, and $12 for online research.
Only costs 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.
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