Client Alert

Favorable Change in US Federal Income Tax Law: Expansion of Deduction to Plaintiff for Payment of Attorneys Fees

October 20, 2004

Julian B. Decyk

As soon as the President signs it, the American Jobs Creation Act of 2004 (HR 4520) will expand the US federal income tax deduction available to a plaintiff for attorney’s fees arising in cases involving “unlawful discrimination.” This change has the potential of making it easier to settle such cases on terms favorable to defendants, especially employers.

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