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Tax Notes


Section 7430, attorney’s fees, assignment of income, tax policy


This article examines statutory interpretation in general and the common-law doctrines at issue in particular (the assignment-of-income doctrine as well as the doctrine first identified in the seminal case of Old Colony Trust). While the author believes that these plaintiffs ought--as a matter of policy and income tax theory--to escape taxation on the amounts paid to their attorneys, she belives that the issue is truly a " deduction" issue, not a "gross income" issue. The article concludes, however, that the ill-fitting application of "gross income" doctrine in this context leads to indefensible distinctions that sound superficially plausible under the rubric of the common-law doctrines themselves but which are ultimately meaningless in the context of the larger problem at hand.


Revised at 97 Tax Notes 1637 (2002)

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