In the course of legal actions, payments may be made pursuant to a final disposition of a court case or a mutually agreed-upon settlement. This course will cover the tax implications for payments made for personal injury, emotional distress, lost wages, punitive awards, pre- and post-judgement interest, contract claims, among other damages. **Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.
Learning Objectives
Obtain a working knowledge of the IRC, Treasury Regulations and case law governing the taxation of litigation payments. Be able to differentiate between the different types of damage payments and whether they are taxable to the recipient or deductible by the payor. Be able to draft pleadings and agreements to order to allocate the payments among the different categories of damages. Have an ability to advise clients on the most advantageous manner of categorizing settlement payments.
Major Topics
Types of damages or remedies that can be awarded or agreed upon pursuant to litigation. Review of the Internal Revenue Code and regulations governing the taxation of various types of litigation payments. Suggestions for drafting pleadings or settlement agreements.
