Contingency Fee Trap Under Federal Tax Law: Avoiding Hidden Settlement Obstacles and Malpractice Issues
Note: CPE credit is not offered on this program
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will discuss the hidden "contingency fee trap" applicable under current law through 2025, impacting most contingency fee plaintiffs. This webinar will explore how this law creates hidden obstacles to settlement and gives rise to possible malpractice issues.
- Overview of current contingency fee tax treatment, origins, sunset provisions
- Case studies and figures with redacted practical examples of the contingency fee trap
- Discussion of what tactics will and will not work to sidestep the fee trap under the wording of the tax code and Commissioner v. Banks
- Practice tips for attorneys to provide adequate counsel on the contingency fee trap and avoid possible malpractice claims
The panel will review these and other high priority issues:
- What is the contingency fee trap, and how was it created?
- Who does the contingency fee trap impact?
- What are the real life implications and effects of the contingency fee trap?
- How can practitioners best mitigate the contingency fee trap?
Phillip M. Krause
Mr. Krause is the President of Krause Capital, Inc. and Structured, LLC. He is a registered representative of... | Read More
Mr. Krause is the President of Krause Capital, Inc. and Structured, LLC. He is a registered representative of FINRA and a registered investment advisor with the SEC. Mr. Krause consults on issues related to resolving mass torts, class actions and complex insurance claims. He is an expert on 468B Qualified Settlement Fund administration, structured settlement annuities and Trust administration. Recently, Mr. Krause has consulted on the NFL Concussion Settlement and the Dr. Larry Nassar – Michigan State University Settlement, where he provided advice on how to allocate settlement proceeds to claimants seeking to protect both their government benefits eligibility and settlement proceeds from future creditors.Close
Robert W. (Rob) Wood
Mr. Wood handles a wide range of tax planning and tax controversy matters. He also serves as an expert witness on tax... | Read More
Mr. Wood handles a wide range of tax planning and tax controversy matters. He also serves as an expert witness on tax issues in legal disputes. Mr. Wood is best known for his expertise advising plaintiffs, defendants, and lawyers on the tax treatment of legal settlements and judgments. He authored the leading book on this topic, Taxation of Damage Awards & Settlement Payments (5th Ed 2021), as well as the Bloomberg Tax Management Portfolio, Tax Aspects of Settlements and Judgments (522).Close