Hoyt W. and Barbara D. Young, et al. - Page 26

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          7430(a)(2), (c)(1)(B)(iii); see Frisch v. Commissioner, 87 T.C.             
          838, 844 (1986) (distinguishing the Civil Rights Attorney’s Fees            
          Awards Act of 1976 (CRAFAA), 42 U.S.C. sec. 1988 (2000), under              
          which a court “may allow the prevailing party * * * a reasonable            
          attorney’s fee”); cf. Blanchard v. Bergeron, 489 U.S. 87, 96                
          (1989) (fee award under CRAFAA is not limited to the amount the             
          prevailing party owes his attorney pursuant to contingent fee               
          agreement).  For purposes of section 7430, fees are “incurred”              
          when there is a legal obligation to pay them.  E.g., Grigoraci v.           
          Commissioner, 122 T.C. 272, 277-278 (2004).                                 
               In his opposition to the Izen fee request, respondent,                 
          referring to the $373,400.71 of fees and other expenses initially           
          requested, asserts that “there is no showing that the Youngs have           
          paid (or were obligated to pay) this or any other amount.”                  
          Respondent raised a similar argument with regard to the                     
          Binder/Minns fee requests.  As we stated in Dixon VII:  “Under              
          the ‘real party in interest’ approach * * *, the fact that                  
          petitioners have not, by and large, paid or incurred the claimed            
          fees and expenses does not render those amounts unrecoverable               
          under section 7430.”  Dixon v. Commissioner, T.C. Memo. 2006-97             
          at Part II.B.2.  Rather, “the relevant inquiry is * * * whether             
          the real parties in interest who did pay or incur those amounts             
          satisfy the net worth requirement imposed by section                        


          18(...continued)                                                            
          pro bono services.                                                          



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