[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3314 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3314

 To amend the Internal Revenue Code of 1986 to allow the deduction of 
  attorney-advanced expenses and court costs in contingency fee cases.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 2007

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.

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

SECTION 1. ATTORNEY-ADVANCED EXPENSES AND COURT COSTS IN CONTINGENCY 
              FEE CASES.

    (a) 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:
    ``(q) Attorney-Advanced Expenses and Court Costs in Contingency Fee 
Cases.--For purposes of subsection (a), expenses and court costs--
            ``(1) which are paid or incurred by an attorney, and
            ``(2) the repayment of which is contingent on a recovery by 
        judgment or settlement in the action to which such expenses and 
        costs relate,
shall be deemed not to be subject to repayment.''.
    (b) 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.
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