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Chicago Sun-Times

Winners of consumer lawsuits ended up with an unwelcome tax-time surprise

Christine Hines, legislative director for the National Association of Consumer Advocates, says some people, unaware they can appeal to the IRS, just suck it up and pay the tax on the legal fees — meaning the lawyers’ earnings get taxed twice.

‘The money goes to the attorney for doing that work … and yet it’s treated as money to the consumers,’ Hines says.”