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Regardless of whether they live in Texas or Alabama, taxpayers shouldn't have to pay federal income tax on the portion of damage awards that goes to their lawyers under contingent-fee agreements, the 5th U.S. Circuit Court of Appeals has ruled. However, the court's opinion acknowledges that their decision creates a circuit split on the issue, making it ripe for review by the Supreme Court.
July 28, 2000 at 12:00 AM
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The original version of this story was published on Law.Com
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