Intermediate Sanctions Compensatory Revenue Adjustment Act of 2003 (ISCRAA)

The Intermediate Sanctions Compensatory Revenue Adjustment Act of 2003 (S. 887) proposes a new tax on attorneys who collect what the bill defines as "excess fees" in certain legal transactions. Under this legislation, a collecting attorney would be required to pay a 5% tax on any fee deemed excessive, with a significantly higher penalty tax of 200% if the overcharge is not corrected within a specific timeframe. The bill aims to discourage lawyers from charging disproportionately high fees by creating a financial deterrent within the federal tax code and allowing the U.S. Tax Court to issue judgments regarding these transactions.