Taxation of Judgements and Settlements

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.

Presented by Allison M. McLeod, LL.M., CPA

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.

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

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

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