CIR v. Banks, 543 U.S. 426, 125 S. Ct. 826 (2005)
In these consolidated cases, John W. Banks, II and Sigitas J. Banaitis failed to report as income portions of a settlement (in Banks’s case) and a favorable judgment (in Banaitis’s case) that were paid to their attorneys. The United States Supreme Court held that when a litigant’s recovery constitutes income, the income includes