- 2 - Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for 2001, and Rule references are to the Tax Court Rules of Practice and Procedure. After settlement of some issues by the parties, the issue for decision is whether petitioner for 2001 is entitled to deduct legal fees. FINDINGS OF FACT At the time the petition was filed, petitioner resided in New York, New York. In 1994, using an attorney, petitioner filed in Federal District Court a lawsuit against petitioner’s employer alleging sexual harassment and discrimination. In 1996, the District Court dismissed petitioner’s lawsuit. In 1997 the United States Court of Appeals for the Second Circuit affirmed the dismissal. Holmes v. NBC, GE, 946 F. Supp. 2 (S.D.N.Y. 1996), affd. without published opinion Holmes v. NBC/GE, 133 F.3d 907 (2d Cir. 1997). The specific terms of the fee agreement between petitioner and her attorney are not established in the record. In 2001, even though petitioner’s Federal sexual harassment and discrimination lawsuit had been dismissed against petitioner several years earlier, petitioner’s attorney continued attempts to recover for petitioner damages relating to alleged sexual harassment and discrimination. The record does not indicate that petitioner ever recovered any amount of damages relating toPage: Previous 1 2 3 4 5 NextLast modified: November 10, 2007