United States Second Circuit

A taxpayer who receives a recovery for lost wages, and who agreed to pay his attorney on a contingent-fee basis, must include the contingent fee in his gross income. Vermont law does not provide attorneys with a proprietary interest in their clients' claims; when a taxpayer is in sufficient control of the source of income, federal principles of taxation deem him the recipient of gross income upon its disposition.

Appellate Information

• Decided 01/13/2004
• Published 01/13/2004

Judges

• WESLEY, Circuit Judge., Before:  OAKES, POOLER, and WESLEY, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellees:
  
• James W. Runcie,Esq., Ouimette & Runcie, Vergennes, VT, for Plaintiffs-Appellees., Kenneth W. Rosenberg, Esq., Tax Division, Department of Justice (Eileen J. O'Connor, Assistant Attorney General, Richard Farber, Department of Justice, on the brief, Peter W. Hall, United States Attorney for Vermont, of counsel), Washington, D.C., for Defendant-Appellant.