[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3181 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 3181

To amend the Internal Revenue Code of 1986 to exclude from gross income 
                        qualified attorney fees.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION OF ATTORNEY FEES.

    (a) 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:

``SEC. 139B. QUALIFIED ATTORNEY FEES.

    ``(a) General Rule.--In the case of an individual, gross income 
does not include qualified attorney fees paid by the individual.
    ``(b) 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.''.
    (b) 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.''.
    (c) 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.
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