Tax Issues|consumeradvocates.org

Groups Support End to Unfair Tax Penalties After Consumer Cases

Publish Date:

August 3, 2021

GroupSupportLtrEDTSCCA082021.pdf

Type:

legislative

Public interest organizations, wrote in strong support of the End Double Taxation of Successful Consumer Claims Act, S. 766, H.R. 4457, introduced by Sen. Catherine Cortez Masto and Rep. Steven Horsford. For too long, taxpayers have been subject to unexpected penalties when they successfully hold bad actors accountable in court. The bill would ensure consumers in these cases are not unfairly taxed on funds they do not receive.

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NACA in the News: Winners of consumer lawsuits ended up with an unwelcome tax-time surprise

Release Date:

March 26, 2021

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.

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NACA in the News: Bill to End Double Tax on Consumer Lawsuits Introduced in Senate

Release Date:

March 19, 2021

Forbes, Bill To End Double Tax On Consumer Lawsuits Introduced In Senate

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NACA in the News: Double taxation must be ended

Release Date:

July 8, 2020

Las Vegas Sun, Double taxation must be ended.

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NACA in the News: Congress must protect consumers from predatory businesses

Release Date:

July 10, 2020

Las Vegas Review-Journal, Congress must protect consumers from predatory businesses.

Letter to the Editor from Sophia Romero, Nevada State Chair for the National Association of Consumer Advocates: "If people are too afraid to pursue legitimate cases because they might suffer financially, then unscrupulous businesses will be let off the hook for preying on vulnerable Nevadans during this difficult time."

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Interest Groups Back Legislation to Remove Confusing Consumer Tax Burden

Public interest organizations strongly support legislation introduced this week that would remove an unfair tax penalty against consumers. “For too long, taxpayers have been subject to unexpected penalties when they successfully hold unscrupulous businesses accountable in court,” the groups said in letters of support for the new bills introduced by Sen.

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NACA Supports Bill That Would End Tax Penalties on Consumers

Publish Date:

October 17, 2019

supportletter_taxbill_cortezmasto.pdf

Type:

legislative

NACA sends this letter in support of the End Double Taxation of Successful Civil Claims Act introduced by Sen. Catherine Cortez Masto. The bill would would ensure that American consumers are not unfairly penalized when they obtain justice for harm caused by bad actors by creating an above-the-line deduction for consumers who recover their legal fees after winning civil claims.

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Update on Tax Campaign

Written by Ira Rheingold, Executive Director

A lot has been happening on our campaign to prevent consumer clients from being taxed on your attorney fees. As you know, we have been working on this issue for several years, and our effort has taken three separate, but coordinated paths: Litigation, Legislation, and Practice Advice. All of NACA’s past published work, including memos and webinars, can be found on our website.