Senator Tillis Introduces Legislation to Change Tax Treatment of Third-Party Litigation Funding

Last month, Senator Thom Tillis (R-NC) introduced a bill that, if passed, would impose significant taxes on qualified litigation proceeds received by third-party funders. Alongside Representative Kevin Hern (R-OH), who recently introduced companion legislation in the House of Representatives, Senator Tillis seeks to add a provision to the One Big Beautiful Bill Act to change the tax treatment of third-party litigation funding.