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.

Amends the Internal Revenue Code to allow attorneys a tax deduction in the current taxable year for reimbursable expenses and court costs which they pay or incur in connection with contingency fee cases.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 814 Introduced in Senate (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.
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