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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 28, 2005, we received and
filed respondent’s supplemental response to petitioner’s
supplemental declaration.
Discussion
Section 7430(a) authorizes the award of reasonable
administrative and litigation costs to the prevailing party in an
administrative or court proceeding 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
administrative or court proceeding. 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
with respect to the amount in controversy or the most significant
issue or set of issues, (2) the taxpayer meets the net worth
requirements of 28 U.S.C. section 2412(d)(2)(B) (2000), and (3)
the Commissioner’s position in the court proceeding was not
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