Awards and Settlements FAQ

March 21, 2014
Does the government regulate tax advisors?

How are damage awards for personal physical injuries taxed

The general rule is all items received constitute “gross income” and are taxed. However, IRC §104(a)(2) provides an important exception to this rule. Section 104(a)(2) provides […]
March 21, 2014
Attorney-Client Conflicts

Attorney failed to consider tax consequences. Can I sue?

It is difficult to assign a probability for a possible malpractice suit. However, the courts do hold attorneys liable for malpractice for failing to render competent […]
March 21, 2014

What tax considerations to weigh in litigation process

It is not just plaintiffs that should consider the tax consequences of an award or settlement. Defendants should, as well. Payments made by a defendant may […]
March 21, 2014
Updates on the Criminal Tax Cases Against Ex-Trump Associates Paul Manafort and Rick Gates

Tax considerations for plaintiffs vs. defendants

Yes. The tax considerations in litigation differ depending on whether you are a plaintiff or a defendant. Effective tax planning for litigation is best performed at […]
March 21, 2014

Considerations for tax awards, settlements or transactions

The taxing authorities and the courts will look to the following factors, among others, in determining the tax consequence of litigation:(1) the total amount sought; (2) […]
March 21, 2014
Former Texas CFO Pleads Guilty to Payroll Tax Crimes

Basic tax principles for awards and settlements

There are certain basics principles for determining the tax effect of a judgment or settlement, including the following. 1. Settlements treated the same as judgments. In […]