A victim of defamation, intentional infliction of emotional distress and invasion of privacy asks for your advice on whether she should pursue legal action.

You determine that she has a good chance of success through settlement or trial. But you realize that if she is required to include the entire damage award in her gross income (including amounts she will never receive because they will be used to pay attorney fees under a contingent fee agreement), federal income taxes could equal, or even exceed, her portion of the damage award.

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