[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 440 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 440

 To amend the Internal Revenue Code of 1986 to allow an above-the-line 
 deduction for attorney fees and costs in connection with civil claim 
                                awards.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2009

Mr. Specter (for himself and Mr. Leahy) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow an above-the-line 
 deduction for attorney fees and costs in connection with civil claim 
                                awards.

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

SECTION 1. ABOVE-THE-LINE DEDUCTION FOR ATTORNEY FEES AND COSTS IN 
              CONNECTION WITH CIVIL CLAIM AWARDS.

    (a) In General.--Paragraph (20) of section 62(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(20) Costs involving civil cases.--Any deduction 
        allowable under this chapter for attorney fees and court costs 
        paid by, or on behalf of, the taxpayer in connection with any 
        action involving a civil claim. The preceding sentence shall 
        not apply to any deduction in excess of the amount includible 
        in the taxpayer's gross income for the taxable year on account 
        of a judgment or settlement (whether by suit or agreement and 
        whether as lump sum or periodic payments) resulting from such 
        claim.''.
    (b) Conforming Amendment.--Section 62 of the Internal Revenue Code 
of 1986 is amended by striking subsection (e).
    (c) Effective Date.--The amendments made by this section shall 
apply to fees and costs paid after the date of the enactment of this 
Act with respect to any judgment or settlement occurring after such 
date.
                                 <all>