Subject Matter: Tax Issues
On July 14, 2026, the U.S. Tax Court issued a decision in Eiler v. Commissioner of Internal Revenue, finding that attorneys’ fees and costs awarded to a consumer in a settlement under the Fair Credit Reporting Act (FCRA) are includible in a consumer’s taxable income.
This decision is the first direct, precedential ruling on the taxability of attorneys’ fees awarded in certain consumer cases. This issue brief describes the facts of the case, the court‘s holding, the decision’s potential impact on future consumer litigants, and NACA‘s work to address the unfair taxation of consumers.
