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Rule 33(b) for imposing upon Mr. Jones respondent’s reasonable
expenses, including reasonable counsel’s fees, incurred in
answering those pleadings.
The text of Rule 33(b) is set forth supra. By signing a
pleading, the signer certifies, among other things, that, after a
reasonable inquiry, he has concluded that, to the best of his
knowledge, the pleading is well grounded in fact and law. The
signer must inquire into both the facts and the law at the time
the pleading is filed. Versteeg v. Commissioner, 91 T.C. 339,
342 (1988). Mr. Jones does not argue that he made a reasonable
inquiry that led to his erroneous conclusion that petitioners’
claims had merit. Indeed, we have concluded that he signed the
petitions knowing that they lacked merit. Mr. Jones signed the
petitions in violation of Rule 33(b) and is deserving of a
sanction on account thereof.
5. Excess Costs
Attorney's fees awarded under section 6673(a)(2) are to be
computed by multiplying the number of excess hours reasonably
expended on the litigation by a reasonable hourly rate. Takaba
v. Commissioner, 119 T.C. at 303. The product is known as the
“lodestar” amount. Id. To assist us in computing the lodestar
amount, respondent has provided us with the declarations of
attorneys Alan J. Tomsic and Paul C. Feinberg (Messrs. Tomsic and
Feinberg, respectively, and the Tomsic and Feinberg declarations,
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