Taxation of Judgements and Settlements

Overview

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. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics covered in this class include:

• 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

Prerequisites

None

Designed For

This course is suitable for Corporate tax and finance personnel, CPAs, CAs EAs, accountants, attorneys and business/financial advisors. All in-house and public practice tax professionals will benefit from this timely and insightful seminar.

Objectives

After attending this presentation you will be able to...

• Obtain a working knowledge of the IRC, Treasury Regulations and case law governing the taxation of litigation payments
• Distinguish between the different types of damage payments and whether they are taxable to the recipient or deductible by the payor
• Draft pleadings and agreements to order to allocate the payments among the different categories of damages
• Advise clients on the most advantageous manner of categorizing settlement payments

Preparation

None