2024 MSCPA Annual Convention: Details

Taxation of Judgements and Settlements

← Return to The CPE Catalog
Monday, October 14, 2024 @ 4:00pm – 6:05pm
Add to Calendar

Description

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.

Prerequisites

None

Highlights

  • 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.

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. 

Preparation

None

Credits

Category Amount
Taxation 2.40