Phillips v. Commissioner
United States Tax Court
Where an attorney received legal fees in 1948 and 1949 under a contingent fee contract and such fees were held by him under a claim of right with no restriction as to their disposition or use, held, that such fees are taxable income in the years received.
1Opinion of the Court
OPINION.
Mulroney, Judge:
The sole question in this case is whether attorney’s fees paid to petitioner under a contingent fee contract, after favorable adjudication in the State trial court, without any restriction as to their disposition or use, are income taxable to the petitioner in the year of receipt.
Petitioner, an attorney, was retained under a contingent fee contract to secure refunds of the Illinois State sales tax paid by certain clients under protest. Under the agreement, petitioner was to be paid a percentage of the tax refunds recovered from the State. Petitioner was successful in…
2Cases cited6 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Rutkin v. United StatesSupreme Court of the United States · 1952
- Healy v. CommissionerSupreme Court of the United States · 1953
- Massell v. DaleyIllinois Supreme Court · 1949
1 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Walet v. CommissionerUnited States Tax Court · 1958
- Bishop v. CommissionerUnited States Tax Court · 1956
- Phillips v. CommissionerUnited States Tax Court · 1957
- Michael Phillips and Sophia Phillips v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
- N. Gordon Phillips and Lauretta M. Phillips v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1959
5 more not listed; retrieve them via the Exa API.