- 5 - proceedings. Given the facts of this case, we find petitioner did not unreasonably protract these proceedings within the meaning of section 7430(b)(3). II. Reasonableness of Litigation Costs Section 7430 limits the prevailing party to an award of reasonable litigation costs.3 Section 7430(c)(1)(B)(iii) generally limits the hourly rate for attorney’s fees.4 A taxpayer may recover attorney’s fees above the statutory limit if the court determines the existence of a special factor such as: (1) Limited availability of qualified attorneys for the proceeding; (2) the difficulty of the issues presented in the case; or (3) the local availability of tax expertise. Sec. 7430(c)(1)(B)(iii). Petitioner seeks to recover attorney’s fees in excess of the statutory limit based on two reasons. First, petitioner argues that its counsel’s “knowledge of substantive and procedural federal income tax law, and his experience in litigation of tax controversies, is far more extensive than the knowledge and experience of a tax attorney who is merely well-qualified to 3 Reasonable litigation costs include, inter alia, reasonable court costs and fees paid or incurred for the services of attorneys in connection with a court proceeding (attorney’s fees). Sec. 7430(c)(1). 4 Rev. Proc. 2002-70, sec. 3.32, 2002-2 C.B. 845, 850; Rev. Proc. 2003-85, sec. 3.33, 2003-2 C.B. 1184, 1190; and Rev. Proc. 2004-71, sec. 3.35, 2004-2 C.B. 970, 976, state that the hourly rate for attorney’s fees during 2003-2005 is $150.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011