Tuesday, January 25, 2005

“How Much Do I Get?” – Settlements, Contingency Fees, & Taxes

The client often asks, “How much do I get?” The lawyer calculates fees and costs and outstanding liens and answers the question. Since “the bottom line” is important, who pays taxes on contingency fees? In this article from the Legal Times, two U.S. Supreme Court cases decided yesterday are discussed as is Federal legislation which provides answers to this taxing question. What are the implications for mediation?

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