- 18 - contained in the Equal Access to Justice Act and incorporated by reference in sec. 7430(c)(4)(A)(ii)). Reasonable attorney’s fees may not exceed the rate of $125 per hour (as adjusted for inflation) unless “a special factor, such as the limited availability of qualified attorneys for such proceeding, the difficulty of the issues presented in the case, or the local availability of tax expertise, justifies a higher rate.” Sec. 7430(c)(1)(B)(iii).15 Respondent publishes the inflation-adjusted rate cap on an annual basis. The hourly rate cap for fees incurred in 2001 (the earliest year for which petitioners claim fees) is $140. Rev. Proc. 2001-13, 2001-1 C.B. 337, 341. The hourly rate cap for fees incurred between 2002 and 2005 is $150. Rev. Proc. 2001-59, 2001-2 C.B. 623, 628; Rev. Proc. 2002-70, 2002-2 C.B. 845, 850; Rev. Proc. 2003-85, 2003-2 C.B. 1184, 1190; Rev. Proc. 2004-71, 2004-2 C.B. 970, 976. The hourly rate cap for fees incurred in 2006 is $160. Rev. Proc. 2005-70, 2005-47 I.R.B. 979, 985. B. Tax Court’s Authority To Award Appellate Fees Under Section 7430 Before we evaluate petitioners’ appellate fee requests under section 7430, we address the threshold issue of our authority to 15 The latter two examples of special factors were added by the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3101(a)(2), 112 Stat. 727, effective for costs incurred after Jan. 18, 1999, id. sec. 3101(g), 112 Stat. 729. All of the costs sought by petitioners were incurred after Jan. 18, 1999.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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