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Uncertainty over who must pay income tax on a lawyer's fee has long vexed employment litigation. But federal Judge Peter C. Dorsey in Connecticut has concluded that both client and lawyer must fork over the tax on the fee component of an award or settlement. Even if an employer, by contract, must write a check to a lawyer directly, Dorsey determined that payment is really being made first to the client, and is taxable as client income.
September 29, 2003 at 12:00 AM
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The original version of this story was published on Law.Com
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