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3. Hourly Rate
We first decide whether the hourly rate for the attorney’s
fees is reasonable. In the absence of proof that a special
factor applies, petitioner may not recover attorney’s fees in
excess of the statutory limit. See sec. 7430(c)(1)(B)(iii).
Petitioner does not argue, and has otherwise failed to
demonstrate, that there was a limited availability of qualified
attorneys or of attorneys with tax expertise to represent her in
this case or that the issues presented were sufficiently
difficult to support her claim for an enhanced hourly rate. The
fact that petitioner’s attorneys billed her and the other Hoyt
investor clients for professional services at a rate lower than
the local customary rate does not establish that the fees
petitioner claims are reasonable.17 We conclude, therefore, that
petitioner may not recover attorney’s fees in excess of $150 per
hour. Id.
With respect to the attorney’s fees and costs charged to
petitioner’s individual account, we award petitioner $1,500 for
work performed by Ms. Pearson18 and $480 for work performed by
17The existence of a prevailing hourly rate in the relevant
area that exceeds the statutory rate is not a special factor.
Pierce v. Underwood, 487 U.S. 552, 571-572 (1988); Foothill Ranch
Co. Pship. v. Commissioner, 110 T.C. 94, 102 (1998).
18We compute the award of Ms. Pearson’s fees as follows: 10
hours multiplied by $150 hourly rate equals $1,500.
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