In Stassi v. Commissioner, the United States Tax Court found that a settlement was not excludable from income as a personal physical injury because the taxpayer failed to demonstrate that her shingles was caused by her...more
On June 26, 2015, a California appellate court rendered a precedential opinion that should hopefully put to rest the issue of whether an employer must withhold taxes on settlements or judgments made to former employees in...more
7/8/2015
/ Costco ,
FICA Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Lost Wages ,
NLRA ,
Settlement ,
Social Security Act ,
United Airlines ,
Wage and Hour ,
Withholding Requirements ,
Withholding Tax
In Sharp v. Commissioner, the United States Tax Court once again demonstrated the importance of carefully crafting settlement agreements and reaffirmed that emotional distress damages are taxable income to the recipient....more
On August 30, 2013, the IRS reiterated its longstanding positions on the proper tax treatment of litigation settlements with current or former employees. In its Chief Counsel Advice (CCA) Memorandum 20133501F, the IRS...more