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Infolawyer
Infolawyer, Attorney
Category: Business Law
Satisfied Customers: 1780
Experience:  Experienced lawyer
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Are donations to a law firm (for the purpose of providing

Customer Question

Are donations to a law firm (for the purpose of providing funds for a Defendant's defense) attributable to the Defendant as income.
Submitted: 1 month ago.
Category: Business Law
Expert:  Infolawyer replied 1 month ago.
It provides a benefit to him in the form of indirect payment. Please let me know if the reply is acceptable by responding "yes" or "acceptable"
Customer: replied 1 month ago.
Would the donations be considered "net" financial resources or income?
Expert:  Infolawyer replied 1 month ago.
It is income. Donations are terms of art referred to not for profit organizations. These are more gifts and resulting income. Please let me know if the reply is acceptable by responding "yes" or "acceptable"
Customer: replied 1 month ago.
What is resulting income?
Customer: replied 1 month ago.
Also, the client didn't use or have any discretion over the money.
Customer: replied 1 month ago.
finally do you have reference to an IRS opinion on this issue?
Expert:  Infolawyer replied 1 month ago.
If the funds were used for benefit on the individual it is income. If person didn't benefit and didn't know if it then it is not. Can seek an IRS opinion letter as well on the issue.