[Editor's Note: Last year's November issue of A&FP editorialized against the IRS practice that is corrected, at least prospectively, by this legislation. As noted in that editorial, even the IRS's own Taxpayer Advocate supported such a correction.
Corporate Tax Law Ends 'Double Taxation' Of Contingent Fees
Last year's November issue of <i>A&FP</i> editorialized against the IRS practice that is corrected, at least prospectively, by this legislation. As noted in that editorial, even the IRS's own Taxpayer Advocate supported such a correction. Passage of the new Act supports the argument that double taxation of contingency fees in such cases had never been the intent of Congress. Employment law and civil rights plaintiffs who previously held back from pursuing modest claims to avoid catastrophic income tax consequences are now free to proceed with such actions.
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Tony MauroThis premium content is locked for Accounting and Financial Planning for Law Firms subscribers only
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