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deductions under section 68. The deficiency of $55,037 that was
determined by respondent included a liability of $17,198 for
alternative minimum tax arising from the disallowance of the
miscellaneous itemized deduction of the attorney’s fees for the
purpose of the alternative minimum tax under section
56(b)(1)(A)(i).
Petitioner and the other members of the class relied on the
guidance and expertise of Fox & Fox in signing the separation
agreements tendered to them by APV and then seeking redress
against APV. Commencing with the advice to petitioner that he
could sign the separation agreement with APV without giving up
his age discrimination claim, Fox & Fox made all strategic and
tactical decisions in the management and pursuit of the age
discrimination claims of petitioner and the other class members
against APV that led to the settlement agreement and the recovery
from APV.
Fox & Fox was aware of the relationship between any gross
settlement amount and the resulting fee that Fox & Fox would
receive. In the effort to ensure that the amounts ultimately
received by petitioner and the other class members would
approximate the full value of their claims, Fox & Fox factored in
an amount for the attorney’s fee portion of the settlement in
2(...continued)
Procedure.
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