Taxation of Judgement and Settlements

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.

Required Knowledge: None

Advanced Preparation: None

Who Should Attend: This course is suitable for Corporate tax and finance executives, directors, managers and staff, CPAs, CAs Enrolled Agents, accountants, attorneys and business/financial advisors who work with and advise businesses that have tax implications.

Objective

• 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.

Credit Types

Taxes: 2