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.
