• U.S. Supreme Court Weighs in on Issue of Taxability of "Contingent Attorney Fees" Portion of Plaintiff's Judgment/Settlement Award
  • February 24, 2005 | Author: Marc A. Kushner
  • Law Firm: Seyfarth Shaw LLP - New York Office
  • The United States Supreme Court, in Commissioner v. Banks and Commissioner v. Banaitis, has now spoken on the issue of the taxability of the "contingent attorney fees" portion of a plaintiff's judgment/settlement award. In general, the issue involved is whether such fees should be includable in a plaintiff's gross income for tax purposes, even though payable to the plaintiff's attorney.