I
109th CONGRESS
1st Session
H. R. 3181
IN THE HOUSE OF REPRESENTATIVES
June 30, 2005
Mr. Paul introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income qualified attorney fees.
Exclusion of attorney fees
In general
Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 139A the following new section:
Qualified attorney fees
General rule
In the case of an individual, gross income does not include qualified attorney fees paid by the individual.
Qualified attorney fees
For purposes of this section, the term qualified attorney fees means attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from a civil action brought by the taxpayer in a court of law.
.
Clerical amendment
The table of sections for such part is amended by inserting after the item relating to section 139A the following new item:
Sec. 139B. Qualified attorney fees
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Effective date
The amendments made by this section shall apply to attorney fees paid on or after January 1, 2005, with respect to any judgment or settlement occurring on or after January 1, 2005.