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Don't shoot the messenger here but this time IRS is correct. If it involves your own lawsuit, it is not business, it is personal and therefore the deduction is limited. Expenses classified as personal cannot be deducted on Schedule C because it is profit/loss from a business. If you are suing the employer for your own benefit, it is not business related for profit activity and therefore it has to go on Schedule A.
I know that's not the answer you were hoping for.
Let me know if you have any questions.
Not necessarily. If your personal interest is involved, for tax purposes it is considered personal. You cannot work on your won case and classify it as business. You will still have to claim the settlement as taxable income but it will not be subject to self employment tax.