{"argument_date":"2004-11-01T00:00:00Z","arguments":[{"argument_date":"2004-11-01T00:00:00Z","heading":"What happened at the argument","official_detail_url":"https://www.supremecourt.gov/oral_arguments/argument_transcript/2004","official_transcript_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","paragraphs":["The government contends that the Internal Revenue Code defines gross income broadly.","The taxpayer contends that the assignment of income doctrine does not apply.","The taxpayer argues that unrelated persons jointly generating income changes the tax treatment."],"reargument":false,"sequence":1,"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 30, lines 31-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 30, lines 31-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 17-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 17-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 43-47","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 43-47"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 5-15","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 5-15"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 44, lines 1-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 44, lines 1-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 17-19","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 17-19"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 29-33","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 29-33"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 39-45","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 39-45"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 55, lines 5-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 55, lines 5-54"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 57, lines 5-5","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 57, lines 5-5"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 29-35","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 6, lines 29-35"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 45-1","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 6, lines 45-1"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 7, lines 5-9","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 7, lines 5-9"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 25-27","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 25-27"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 43-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 43-54"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 9-19","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 9-19"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 15-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 9, lines 15-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 5-7","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 9, lines 5-7"}]}],"caption":"Commissioner v. Banks","case_history":[{"changed_at":"2026-08-29T20:06:29.917973Z","explanation":"An official oral-argument transcript was verified.","status":"argued"},{"changed_at":"2026-08-29T20:06:29.921564Z","explanation":"An official oral-argument transcript was verified.","status":"argued"}],"case_status":"argued","dek":"The dispute centers on whether a client must report the full settlement amount or only the net amount received after paying legal fees.","dek_sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 30, lines 31-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 30, lines 31-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 17-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 17-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 44, lines 1-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 44, lines 1-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 55, lines 5-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 55, lines 5-54"}],"dispositions":[],"latest_court_document_date":"2004-11-01T00:00:00Z","maturity":"official_transcript","official_detail_url":"https://www.supremecourt.gov/oral_arguments/argument_transcript/2004","official_disposition_urls":[],"official_docket_url":"https://www.supremecourt.gov/docket/docketfiles/html/public/03-892.html","primary_docket":"03-892","revisions":[{"correction_note":"Rewritten to the concise citizen-facing editorial standard.","created_at":"2026-08-31T15:28:02.808867Z","maturity":"official_transcript","revision_number":1},{"correction_note":"Migrated to the dated official Court activity contract without model use.","created_at":"2026-09-05T03:22:24Z","maturity":"official_transcript","revision_number":2}],"schema_version":"1.1","sections":[{"heading":"What this case is about","paragraphs":["The case asks if a taxpayer must include attorney fees in gross income. The government argues the full recovery is taxable. The taxpayer argues only the net amount is taxable."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 30, lines 31-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 30, lines 31-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 17-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 17-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 44, lines 1-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 44, lines 1-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 55, lines 5-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 55, lines 5-54"}]},{"heading":"How the case got here","paragraphs":["The Supreme Court heard oral argument in this case on November 1, 2004."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 5-15","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 5-15"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 57, lines 5-5","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 57, lines 5-5"}]},{"heading":"What each side wants","paragraphs":["The government wants the taxpayer to report the full settlement amount as income.","The taxpayer wants to report only the net amount received after paying fees."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 30, lines 31-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 30, lines 31-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 17-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 17-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 44, lines 1-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 44, lines 1-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 55, lines 5-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 55, lines 5-54"}]},{"heading":"What each side says","paragraphs":["The government argues that gross income includes all income from any source.","The taxpayer argues that the assignment of income doctrine does not apply here."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 30, lines 31-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 30, lines 31-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 17-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 17-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 44, lines 1-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 44, lines 1-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 55, lines 5-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 55, lines 5-54"}]},{"heading":"What the justices asked","paragraphs":["Justice O'Connor asked about attorney fees in class action suits.","Justice Souter asked why the rule does not apply to class actions."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 43-47","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 43-47"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 17-19","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 17-19"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 29-33","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 29-33"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 39-45","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 39-45"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 57, lines 5-5","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 57, lines 5-5"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 29-35","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 6, lines 29-35"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 45-1","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 6, lines 45-1"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 7, lines 5-9","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 7, lines 5-9"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 25-27","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 25-27"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 43-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 43-54"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 9-19","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 9-19"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 15-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 9, lines 15-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 5-7","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 9, lines 5-7"}]},{"heading":"Why it matters","paragraphs":["This case determines how taxpayers report civil rights settlements. It affects the calculation of taxable income for many litigants. The outcome defines the scope of federal taxing power."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 30, lines 31-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 30, lines 31-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 17-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 17-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 44, lines 1-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 44, lines 1-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 55, lines 5-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 55, lines 5-54"}]},{"heading":"What happens next","paragraphs":["This article currently covers the argument record. Use the official docket link for later case activity."],"sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 43-47","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 43-47"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 5-15","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 5-15"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 17-19","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 17-19"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 29-33","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 29-33"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 5, lines 39-45","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 5, lines 39-45"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 57, lines 5-5","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 57, lines 5-5"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 29-35","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 6, lines 29-35"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 6, lines 45-1","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 6, lines 45-1"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 7, lines 5-9","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 7, lines 5-9"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 25-27","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 25-27"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 43-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 43-54"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 8, lines 9-19","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 8, lines 9-19"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 15-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 9, lines 15-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 9, lines 5-7","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 9, lines 5-7"}]}],"slug":"2004-03-892-commissioner-v-banks","term":"2004","title":"Does a taxpayer owe tax on attorney fees deducted from a civil rights settlement?","title_sources":[{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 30, lines 31-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 30, lines 31-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 4, lines 17-41","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 4, lines 17-41"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 44, lines 1-23","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 44, lines 1-23"},{"evidence_type":"Transcript","label":"Official Supreme Court Transcript — file page 55, lines 5-54","official_url":"https://www.supremecourt.gov/pdfs/transcripts/2004/03-892.pdf","page_label":"file page 55, lines 5-54"}],"topics":[],"undated_disposition_date_fallback":null,"updated_at":"2026-09-05T03:22:24Z"}