Even if the $289 verdict against Monsanto last week survives the appellate process, the plaintiff will see much of his award go the IRS because of  taxes imposed by the a new tax law involving legal fees, according to tax lawyer Robert W. Wood, a Forbes contributor.

In his article, Wood explains: “Under President Trump’s tax bill passed in late 2017, there is a new tax on litigation settlements: no deduction for legal fees. Amazingly, many legal fees simply can’t be deducted. That means [plaintiff Dewayne] Johnson must pay tax even on monies his attorney collects. That is so even though the attorney must also pay tax on the same money.”

Johnson’s suit claimed Monsanto’s Roundup weedkiller caused his cancer.

Read the Forbes article.

Will you or your law firm practice be affected by this week’s compromise by Congressional leaders regarding taxes and deductions if it becomes law (which is currently anticipated)?

Accountant Steven Bankler has outlined which “Extenders,” both for business and individuals, are being made permanent, and also which “Extenders” are being extended through 2016 and which are extended through 2019.

In an analysis published on his website, he has outlined how those extenders apply to businesses and to individuals.

Read the report.

U.S. House of Representatives Republican and Democratic negotiators reached a deal late Tuesday on a $1.1 trillion spending bill and a huge package of tax breaks, reports The New York Times.

“Legislative drafters, racing a midnight deadline, met the time limit for issuing the tax package but apparently missed it for the spending bill. That could push back a vote on the House floor by one day, until Friday,” according to the report.

“Since the Republicans took back control of the House in 2011, a majority in the party has routinely opposed compromise budget and spending measures, forcing party leaders to rely on Democrats for votes to clear the bills. All signs indicate that the same dynamic is playing out now.”

Read the report.