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Sponsored by Lorman Education
Product ID: 406224EAU
 
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Latest Guidance on the Tax Treatment of Settlement and Damage Awards

OnDemand Webinar (87 minutes)

Knowing how to treat taxes in settlements and damage awards can save you time and money when it comes to dealing with tax laws.

This topic will focus in on and explore practical strategies for dealing with the important tax aspects of personal injury, commercial, employment and other lawsuit awards and review the many traps for the unwary. Confusion and litigation abound relative to the taxability of damages for commercial awards; personal injuries or sickness; differentiate for damages for nonphysical injuries such as gender and age discrimination or in harassment cases; punitive damages; interest on deferred awards payouts; tax issues in structured settlements; tax issues differing from state to state and many other clear as mud issues. In some cases lawsuit awards and settlements can be wholly or partially tax-free. In others, they can even be fully taxable. Additionally, personal injury victims can wind up paying income tax on money that goes to their attorneys. Many clients may not understand any of this but is necessary and important that valuation and litigation support consultants as well as attorneys have a clear understanding of these issues to properly advise their clients. This topic will give practitioners the answers to these and other important questions.

Authors

Martin H. Abo, CPA, ABV, CVA, CFF, Abo and Company, LLC

Agenda

Must Know Tax Basics

• Overview - Tax 101

Consider the Origin of the Claim to Determine Tax Treatment

When Drafting Your Complaint Use the Irc Claim Checklist to Make Sure You Have Included Every Non-Taxable Claim

• The Internal Revenue Code Provides Every Practitioner a List of Damages for Claims That Would Not Trigger a Tax Recognition Event

When Drafting a Complaint Consider, If Applicable, Including the Causes of Action That Permit a Plaintiff to Deduct the Recovery of Attorney Fees as an Above-The-Line Deduction

• Attorney Fee Checklist

Do Not Use a Boiler-Plate List of Claims or Damages in a Complaint or Settlement Agreement

Be Precise in Drafting Your Complaint and Settlement Agreement to Reflect Statutory Exclusions

Make Sure Claims for Tax Excluded Items Are Supported in the Trial Record by Testimony, Evidence and the Payor's Intent

Make Sure the Payor's Intent and Information Returns Are Consistent

Consider Your Client's Best Case and Worst Case Net Proceeds Before Commencing Litigation

Consult With a Tax Professional During Each Stage of a Controversy, Negotiation, Litigation, or Arbitration Process

Additional Formats

Audio & Reference ManualMore Info
MP3 DownloadMore Info