[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2519 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2519

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


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                    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

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                                 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. UNIFORM TREATMENT OF 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.--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.''.
    (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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