Attorney fee deferral
Plaintiff attorneys can structure their legal fees as contingency fees, which can help even out the fluctuation of fees coming into the firm. This creates several tax advantages for plaintiff attorneys that utilize contingency fees. You can learn more about fee deferral and even download sample release language for clients at the links below.
CSS offers a strategic approach to attorney fee deferrals.
Structured Attorney Fees & Tax Outcomes
Contingent fee attorneys can defer the receipt of legal fees and invest pretax to be paid and taxed later in several different ways. Structured legal fees are exempt from section 409A,1 IRC section that taxes many types of deferred compensation per the Childs V. Commissioner case, 1994. Contingent fee attorneys may dictate the timing of payments within the parameters outlined by the Child's case. Schedule a time today to strategize how best to utilize attorney fee deferrals this year.