Attorneys' fee award refers to the amount given to the tax payer who wins the case as a settlement of litigation expenses and attorney’s fees. This is awarded by the Internal Revenue Service. The expenses involved in litigation and other court procedures can be overwhelming. Attorneys' fees are assessed in a number of ways, usually set by contract in advance of the representation, including by billable hours, flat fees, or contingent fees. Once the tax payer proves that the IRS position on their case was wrong, s/he is eligible to receive attorney’s fee awards.