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A taxpayer who won a recovery of backpay and paid his attorneys on a contingency fee basis must include the contingency payment figure in his gross income for tax purposes, the 2nd Circuit has ruled in an issue that has split other appeals courts. The man argued that he never received the funds and had no right to them due to a lien under state law, but the court found no reason to treat contingent fee arrangements differently than other arrangements.
January 14, 2004 at 12:00 AM
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The original version of this story was published on Law.Com
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