Link: The American Jobs Creation Act of 2004 is ready for President Bush’s signature. The act may be a boon for patent litigators who work on contingency.
The IRS has previously forced victorious plaintiffs to pay taxes on the entire award, then taxed the attorneys for their contingent fee. In essence, a large chunk of the earnings are double taxed. The Jobs Creation Act of 2004 reportedly eliminates this double taxation — thus increasing the size of the pot to be split between the plaintiff and its attorneys.