Attorney Fee Structures:

In 1996, the U.S. Court of Appeals for the 11th Circuit affirmed a Tax Court ruling against the IRS that allows attorneys to defer income tax on all or a portion of their fees through the use of a structure. The ruling states that taxes on attorney fees which are structured are payable in the year in which they are received, rather than when the case is initially settled.

Structuring all or a portion of your fees can:

    • Reduce your federal income tax burden by spreading your fees over time

    • Allow you to manage future overhead expenses through customized payment plans

    • Provide you with an extra layer of financial security through a supplemental
      retirement plan

    • Provide an excellent opportunity to establish a college fund for your children