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The 7th U.S. Circuit Court of Appeals has upheld that contingent attorney fees are part of a client's taxable income. Eldon Kenseth launched a successful age bias suit against his former employer, and the firm representing him deducted 40 percent of the award pursuant to a contingency agreement. The U.S. Tax Court had ruled that the entire award was part of Kenseth's gross income and subject to tax.
December 19, 2001 at 12:00 AM
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The original version of this story was published on Law.Com
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