I
111th CONGRESS
1st Session
H. R. 2519
IN THE HOUSE OF REPRESENTATIVES
May 20, 2009
Mr. Davis of Alabama (for himself and Mr. King of New York) 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 allow the deduction of attorney-advanced expenses and court costs in contingency fee cases.
Uniform treatment of attorney-advanced expenses and court costs in contingency fee cases
In general
Section 162 of the Internal Revenue Code of 1986 (relating to trade or business expenses) is amended by redesignating subsection (q) as subsection (r) and by inserting after subsection (p) the following new subsection:
Attorney-advanced expenses and court costs in contingency fee cases
In the case of any expense or court cost which is paid or incurred in the course of the trade or business of practicing law and the repayment of which is contingent on a recovery by judgment or settlement in the action to which such expense or cost relates, the deduction under subsection (a) shall be determined as if such expense or cost was not subject to repayment.
.
Effective date
The amendment made by this section shall apply to expenses and costs paid or incurred in taxable years beginning after the date of the enactment of this Act.