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S 814 IS
110th CONGRESS
1st Session
S. 814
To amend the Internal Revenue Code of 1986 to allow the deduction of attorney-advanced expenses and court costs in contingency fee cases.
IN THE SENATE OF THE UNITED STATES
March 8, 2007
Mr. SPECTER introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to allow the deduction of attorney-advanced expenses and court costs in contingency fee cases.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. DEDUCTION OF ATTORNEY-ADVANCED EXPENSES AND COURT COSTS IN CONTINGENCY FEE CASES.
(a) In General- Section 162 of the Internal Revenue Code of 1986 (relating to trade or business expenses) is amended by redesignating subsection (q) as subsection (r) and by inserting after subsection (p) the following new subsection:
`(q) Attorney-Advanced Expenses and Court Costs in Contingency Fee Cases- There shall be allowed as a deduction under this section any expenses and court costs paid or incurred by an attorney the repayment of which is contingent on a recovery by judgment or settlement in the action to which such expenses and costs relate. Such deduction shall be allowed in the taxable year in which such expenses and costs are paid or incurred by the taxpayer.'.
(b) Effective Date- The amendments made by this section shall apply to expenses and costs paid or incurred after the date of the enactment of this Act, in taxable years beginning after such date.
U.S. Congress - Text of S.814 as Introduced in Senate A bill to amend the Internal Revenue Code of 1986 to allow the deduction of attorney-ad...
