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Is a settlement taxable to the recipient attorney?

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    All businesses except partnerships must file an annual income tax return and must pay tax on income as it is earned or received during the year; this includes attorneys entitled to a portion of any damages award or settlement amount. If you are a Sole proprietor then you may be liable for: 1) income tax; 2) self-employment tax; 3) estimated tax; 4) employment taxes; and 5) excise taxes. If you are a partnership then you may be liable for: 1) annual return of income; 2) employment taxes; and 3) excise taxes. If you are a partner in a partnership (individual) then you may be liable for: 1) income tax; 2) self-employment tax; and 3) estimated tax. If you are a corporation or S corporation then you may be liable for: 1) income tax; 2) estimated tax; 3) employment taxes; and 4) excise taxes. If you are a S corporation shareholder then you may be liable for: 1) income tax; and 2) estimated tax.

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    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    (702) 997-6465
    (786) 999-8406
    (385) 501-5934