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B-190616 1 (1978-03-22)

handle is hein.gao/gaobadfuj0001 and id is 1 raw text is: 

______                    a                         ______________________________


OECISION





FILE:  B-190616


MATTER


DIGEST:


  TmE  COMIVPTROLLERn GINEFAL
. ap   THE UNITED UrATE
  WASHINGTON.   O..  3O64S




         DATE:   March 22 1978


OF:   Donald Mitgang - Real Estate Expenses
      Attorney's Fees

  Employe4 purchased residonce in Buffalo,
  New York, area incilent to transfer and
  incurred'cost of legal fees of both
  bank's (mortgagee's) attorney and his
  own attorney for performance of legal
  services in connection with transaction.
  Employee may he reimbursed for both
  sets of legal fee' an under our deci-
  sion in George W. Lay. 56 Comp. Gen. 561
  (1977), except for Ests of  litigation,
  necessary and reasonable legal fees
  customary in locality of residence trans-
  action may be reimbursed. Customary
  practice in Buffalo area is for purchaser
  to incur expenses of mortgagee's at-
  torney and own attorney in connection
  with similar legal services performed
  in the interests of the respective
  parties.  B-174964, September 21, 1972,
  is no longer to be followed.


     This matter concerns the rdquest for an advance decision by
Mr. William H. Ethe, an authorized certifying officer of the
Decartment of the Treasury, Internal Revenue Service (IRS) as bo
whether Wr. Donald Mitgang, an employee of the IRS may be allowed
payment in the additional amount of $450 for legal fees incurred
in connection with the purchase of a residence incident to a
permanent change of station.

     The record shows that in February 1977, Mr. Mitgang was
authorized relocation expensg-Si'cident to his transfer from
Cleveland, Ohio, to Buffalo,- New York. On June 14, 1977,
,   Mitgang purchased a residence in the Buffalo area and in
connection with 6his residence Mr. Mitgang has claimed reimburse-
ment of legal fees in the total amount of $900. The claim in the
amount of $900 represents attorney's fees of $450 for legal ser-
vices provided by attorneys of the Buffilo Savings Bank (mortgagee)
in connection with Mir. Mitgang's receipt of a loan for the real
estate purchase and also $450 in fees for legal services provided
by Mr. Mitgang's attorney incident to the real estate transaction.


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