Kenseth v. Commissioner
United States Tax Court
In 1993, P recovered a $ 229,501 settlement under the Federal Age Discrimination in Employment Act of 1967, Pub. L. 90-202, sec. 2, 81 Stat. 602, current version at 29 U.S.C. secs. 621-633a (1994). A portion of the settlement proceeds was deposited in the trust account of P's attorney, X. In distributing the settlement proceeds, X retained $ 91,800 in attorney's fees pursuant to a contingent fee agreement.
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In 1993, P recovered a $ 229,501 settlement under the Federal Age Discrimination in Employment Act of 1967, Pub. L. 90-202, sec. 2, 81 Stat. 602, current version at 29 U.S.C. secs. 621-633a (1994). A portion of the settlement proceeds was deposited in the trust account of P's attorney, X. In distributing the settlement proceeds, X retained $ 91,800 in attorney's fees pursuant to a contingent fee agreement. The remaining amount was paid to P. P excluded the settlement proceeds designated as personal injury damages under the settlement agreement. R determined that the entire $ 229,501 recovered…
1Opinion of the Court
Ruwe, Judge:*
Respondent determined a deficiency of $55,037 in petitioners’ 1993 Federal income tax. The sole issue for decision is whether petitioners’ gross income includes the portion of thie settlement proceeds of a Federal age discrimination claim that was paid as the attorney’s fees of Eldon R. Kenseth (petitioner) pursuant to a contingent fee agreement.
FINDINGS OF FACT
The parties have stipulated some of the facts, and the stipulations of facts and the attached exhibits are incorporated in this opinion. At the time of filing their petition, petitioners resided in Cambridge, Wisconsin.
In…
2Cases cited24 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Helvering v. HorstSupreme Court of the United States · 1940
- James v. United StatesSupreme Court of the United States · 1961
- Badaracco v. CommissionerSupreme Court of the United States · 1984
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