TITLE

WHY SETTLE FOR LESS? FACTORING IN TAXABILITY

AUTHOR(S)

Edwards, Tony M.; Reiser, Carolyn

PUB. DATE

April 1992

SOURCE

ABA Journal;Apr92, Vol. 78 Issue 4, p52

SOURCE TYPE

Periodical

DOC. TYPE

Article

ABSTRACT

Presents advice to U.S. lawyers on the tax considerations in bringing a claim and negotiating a settlement for a client. Taxation of damages and settlement awards; Nature of the claim; Tax Court cases; Steps to take at various stages of the case; Planning opportunities for both the defendant and the plaintiff's counsel.

ACCESSION #

4794695

Tags: DAMAGES (Law) -- Taxation;  COMPROMISE (Law);  TAXATION;  CASE studies

 

Related Articles

• Recent developments in the taxation of federal statutory damages. Wells, Wayne R. // CPA Journal;Feb96, Vol. 66 Issue 2, p40 

  Focuses on developments in the taxation of federal statutory damages, specifically the applicability of IRC Sec. 104(a)(2). Expansion during the 1980s; Ruling of United States versus Burke; Civil Rights Act of 1991; Revenue Rule 93-88 issued by the Internal Revenue Service; C>I>R> versus Schleier.

• Tax court excludes back pay received for age discrimination. Barton, Peter; Sager, Clayton // CPA Journal;Mar1994, Vol. 64 Issue 3, p62 

  Discusses the Tax Court's decision exclude from taxation all damages, including back pay received as a result of age discrimination. 1991 and 1993 decisions on the case of Downey versus Commissioner; Standard for claims to be a tort-like personal injury; International Revenue Service's concerns...

• Taxability of damages. Hanson, Randall K.; Smith, James K. // CPA Journal;May98, Vol. 68 Issue 5, p22 

  Discusses the tax rules relating to damage awards. Common theories asserted in seeking to recover civil money judgments; Taxability of damage recoveries; Structuring of settlement agreements. INSET: In brief..

• Deduction of Tax from Damages. Jacobs, H. I. // Accountancy;Nov71, Vol. 82 Issue 939, p649 

  Presents a letter to the editor in response to the article about deduction of tax from damages, which was published in the September 1971 issue of the journal "Accountancy."

• CORPORATION TAX.  // Accountancy;Feb1968, Vol. 79 Issue 894, p125 

  Presents a British legal case dealing with corporate taxation. Facts, issue and ruling in 'Roberts v. WS Electronics Ltd.'; Tax treatment of payment in compensation for the diversion of the company's goodwill; Controversy as to whether such payment is capital or income in nature.

• Taxation law-the taxation of damages and back pay awards in light of United States v. Burke... Morris, Cathy // Journal of Corporation Law;Summer93, Vol. 18 Issue 4, p769 

  Focuses on taxation laws governing the taxation of damages and payback awards. Analysis of damage awards determined to be included or excluded in gross income; Reviewing court decisions under section 104(a) with focus on `United States versus Burke'; Comparison of taxation of damages awarded...

• Employment discrimination damages.  // Practical Accountant;Mar97, Vol. 30 Issue 3, p21 

  Reports on the non-excludability of employment discrimination damages from gross income under Section 104(a)(2) of the US Internal Revenue Code.

• Taxing times for plaintiffs. Reske, Henry J. // ABA Journal;Nov96, Vol. 82 Issue 11, p22 

  Discusses the implications of minimum-wage law's obscure provisions taxing both punitive and emotional distress damages. President Bill Clinton's reservations about taxing awards for emotional distress; Experts' view of the measure as clarifying the law and affecting the way settlements are...

• Federal income taxation of punitive damages awarded in personal injury actions. Feinberg, Paul C. // Case Western Reserve Law Review;1992, Vol. 42 Issue 2, p339 

  Examines the income taxation of punitive damages awarded in personal injury actions in the United States. Nature of the different types of tort damages awards; Origins of the treatment of damages under federal tax law; Judicial decisions regarding the status of punitive damages; US Congress'...

Read the Article