Abstract
This article looks at the issue of the tax accounting issues associated with contingent fees. From the client's perspective, it addresses the assignment of income issue and matters presented under the alternative minimum tax incurred (prior to the amendment of IRC 62(a)(2) and the Supreme Court's 2005 decision in Banks). From the law firm's perspective, it addresses the questions of timing and characterization of costs advanced to clients and incurred in connection with contingent fee litigation.