November 10, 2004 DOL Home > OALJ Home > Rules of Practice and Procedure |
Civil Rights Tax Relief
H.R.4520 - American Jobs Creation Act of 2004 Section 703 of H.R. 4520, signed by the President on October 22, 2004, establishes a deduction from gross income for attorneys' fees and court costs incurred by, or on behalf of, individuals who prevail in employment discrimination and other cases. The text of section 703 follows:
SEC. 703. CIVIL RIGHTS TAX RELIEF. (a) DEDUCTION ALLOWED WHETHER OR NOT TAXPAYER ITEMIZES OTHER DEDUCTIONS- Subsection (a) of section 62 (defining adjusted gross income) is amended by inserting after paragraph (18) the following new item: "(19) COSTS INVOLVING DISCRIMINATION SUITS, ETC- Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination (as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code or a claim made under section 1862(b)(3)(A) of the Social Security Act (42 U.S.C. 1395y(b)(3)(A)). The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer's gross income for the taxable year on account of a judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from such claim.". (b) UNLAWFUL DISCRIMINATION DEFINED- Section 62 is amended by adding at the end the following new subsection: "(e) UNLAWFUL DISCRIMINATION DEFINED- For purposes of subsection (a)(19), the term "unlawful discrimination" means an act that is unlawful under any of the following:
(c) EFFECTIVE DATE- The amendments made by this section shall apply to fees and costs paid after the date of the enactment of this Act with respect to any judgment or settlement occurring after such date.
|
|
|