Larry Smith Interview by Chicago Sun-Times on Double Income Tax on Legal Fees
I was proud to help out all consumers and their attorneys in taking part in a story by the Chicago Sun-Times on a tax code quirk that creates double income taxes on legal fees.
After our cases are resolved, consumers tend to receive a 1099 tax form from the company we sued for the entire amount of the recovery, including our fees, which we do not charge to our clients. Under most of the consumer protection laws we utilize, the defending party is responsible for covering our fees. But then after the 1st of the year, a 1099 goes to the consumer advising that our fees are included as part of their income – causing some panic.
We are hoping Congress can close this little loophole and allow consumers to feel free to seek the legal help they need without the concern of an incredible tax consequence. If you feel your consumer rights have been infringed on, contact SmithMarco for a free case evaluation.
- What Transactions Are Protected by EFTA and Regulation E. - March 10, 2023
- What is Regulation E for EFTA? - March 10, 2023
- How to Handle OFAC Alerts on Your Credit Report - February 13, 2023