Trial Lawyers Expect Tax Break?

Despite America's massive deficit and debt, the American Association for Justice, the nation's trial lawyer group, has announced that it anticipates the U.S. Department of Treasury to soon give its members a $1.6 billion tax break on contingency fee lawsuits.

Many speculate that the break might be similar to the one proposed last year in Congress, but didn't make it through. Last year's proposal would have let attorneys deduct fees and costs up-front for filing contingency fee lawsuits.

The Treasury Department had cautioned the AAJ to keep the information quiet.

An editorial last year from the Washington Legal Foundation denounced the bill.

"If Sen. Specter's proposed modification of the Internal Revenue Code succeeds, the federal government will, for all intents and purposes, share in the cost and risk of bringing the initial litigation," it said.

"Under current and certainly potential future tax laws, this could be as much as 40 percent of the cost of bringing litigation."

To view the full article, follow this link: http://www.legalnewsline.com/news/227944-sources-trial-lawyers-expect-tax-break-from-treasury-department

July 26, 2010

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